Savient endocrine/metabolic news

Savient's board proposed a shareholder rights plan to protect shareholders in the event of an unsolicited takeover bid. Under the plan, shareholders of record on Aug. 17 will be given the option of purchasing one right for each common share held. The right will become exercisable if any group or person acquires more than 15% of the company's common stock, or commences a tender or exchange offer that would result in the party owning 15% or more of Savient's stock. If exercised, the right holder will be entitled to purchase an additional share of common stock for $2.50 divided by half of the stock's current price. Savient said its board elected to implement the plan in light of the current market environment, and recent efforts by holders of the company's convertible notes that were adverse to the best interests of the company and its security holders.

In late April, Tang Capital Partners and other unidentified note holders filed a complaint in the Delaware Court of Chancery alleging that Savient is insolvent. The unidentified holders of 4.75% convertible senior notes due 2018 alleged that Savient had defaulted on the notes, claiming that the complaint was valid as an event of default. Last month, Savient said the Court of Chancery ruled that Tang Capital did not have standing to ask the court to appoint a receiver for Savient. The court also ruled that an event of default under the notes had not occurred (see BioCentury, May 7; June 18 & July 30). ...