The low-ball bid for Immunex American Home Products Corp. isn't talking about its surprise bid to acquire the rest of Immunex Corp., so outsiders can only speculate about the pharmaceutical company's motives. Given the size of the offer and its timing, it's hard to escape the conclusion that the unsolicited bid is a hostile one.
The bid was delivered in a letter the night before a previously scheduled board meeting. AHP is offering $14.50 a share, for a total of $263 million to IMNX shareholders.
"We were caught by surprise," said Peggy Phillips, senior vice president of pharmaceutical development. "We had gotten ourselves pretty comfortable that they would stay as a distant partner. In some ways AHP has been a better partner than American Cyanamid - there's a lot more focus on their end."

Deal terms

The actual bid is less than meets the eye, and could represent an attempt by AHP to save some money.