Shareholder Sues Idenix to Block Merck Takeover
An Idenix shareholder is claiming Idenix is undervalued by Merck's $3.9 billion takeover offer and has initiated a lawsuit to block the deal.
Merck announced in early June that it will buy the biotechnology company in an effort to bolster its arsenal of potential drugs in the hotly competitive hepatitis C area. According to Bloomberg, the proposed purchase price of $24.50 a share is more than triple Cambridge, Massachusetts-based Idenix’s closing level on June 6 of $7.23.
Yet, Idenix investor Ronald Burns claims the purchase price fails to account for Idenix’s “intrinsic value” and is the result of a flawed process that prevents competing bids because it includes a no-solicitation clause, grants Merck the right to match higher offers and provides for a $115.6 million termination fee.
Read the Bloomberg story