AHP monetizing Immunex

IMNX filed a shelf registration statement covering the planned sale of up to 20 million newly-issued shares, valued at up to $1.1 billion using IMNX's Wednesday close of $53.438, in addition to the planned sale of 50 million IMNX shares by majority owner American Home Products (AHP). AHP's offering, valued at up to $2.7 billion, will reduce AHP's ownership in IMNX to 43 percent from 55 percent. Morgan Stanley Dean Witter and Merrill Lynch will underwrite both offerings. The deal comes after AHP bought 1.02 million IMNX shares between May 30 and June 13 at prices ranging from $25.812 to $32.081 (see BioCentury, July 3). Concurrently, AHP plans to convert its $450 million convertible note (issued in the second quarter of 1999) into IMNX shares. Using the split-adjusted conversion price of $28.947, 15.55 million shares underlie the note. If AHP's ownership of IMNX falls below 45 percent, AHP will hold two instead of three seats on IMNX's board of directors. ...