ARTICLE | Finance
Dutch dance
Royalty Pharma uses Elan's Dutch auction as shareholder litmus test
April 22, 2013 7:00 AM UTC
Following the results of Elan Corp. plc's $1 billion Dutch auction share buyback last Thursday, Royalty Pharma hopes remaining Elan shareholders will accept an $11.25 per share takeout bid based on the firm's contention that the current stock price of $11.95 is inflated and could sink below $10.50.
Elan's largest shareholder, Johnson & Johnson (NYSE:JNJ), isn't waiting around to see how the drama plays out and instead pocketed $923 million in the Dutch auction by selling shares at the bottom of Elan's proposed range of $11.25-$13...