CPEX, Footstar deal

Investor Mangrove Partners Fund L.P. said it would vote against the sale of CPEX to holding company Footstar for $27.25 per share in cash. Mangrove, which owns about 5.7% of CPEX's outstanding shares, said the deal undervalues the company. Mangrove said CPEX could either pay out a dividend of more than $4 per share or spin off a royalty trust for hypogonadism treatment Testim transdermal testosterone gel. Mangrove said the trust would pay over $8 per share in annual dividends. Testim, which is marketed by Auxilium Pharmaceuticals Inc. (NASDAQ:AUXL, Malvern, Pa.), uses CPE-125 drug delivery technology from CPEX (see BioCentury, Jan. 10). ...