Chiron, Viagene Inc. deal

VIGN (San Diego ) and CHIR (Emeryville, Calif.) disclosed that they had held brief, preliminary discussions regarding a possible strategic merger, but did not reach any agreement. The talks were initiated by CHIR, which holds 2 million VIGN shares, an 18 percent equity stake.

Neither side would comment on why the talks were stopped, and CHIR declined to discuss the reasons for its proposal. But VIGN President and CEO Robert Abbott said, "They probably feel, as we do, that a combination of the two companies would be beneficial. They’ve stated publicly that gene therapy is a high priority area for them. They’ve also indicated that they were going to focus on undervalued companies. Like any CEO, I think our company is undervalued." ...