Ebb & Flow
Telik (TELK) sold the first underwritten deal since the terrorist attacks on Sept. 11, raising $26 million through the sale of 4 million shares at $6.50 in a follow-on. However, investors shouldn't read too much into whether the markets are percolating. The underwriter group - led by Lehman Brothers, which was joined by Legg Mason; UBS Warburg; Lazard; and Needham & Co. - already had completed the European leg of the road show prior to the attacks, and scuttlebutt was that the deal could have been sold entirely off the European book.
TELK slipped $2.70 (29%) while it was on the road. The developer of drugs for cancer and diabetes filed for the deal on Aug. 17, when it was trading at $9.20. The stock closed Friday at $6.50, down $0.50 on the week...