Ebb & Flow

For those who think an M&A announcement represents the endgame for a biotech company, last week's maneuverings surrounding the proposed takeouts of Corvas (CVAS) and Oxford GlycoSciences (LSE:OGS; OGSI) provides notice that a deal may just begin the bickering over a company's value.

OGS postponed this Tuesday's EGM in the wake of a competing bid, thus giving investors a bit more time to ponder how to maximize their ROI. Meanwhile, a big shareholder from CVAS claims to have rounded up enough fellow shareholders to put a damper on the company's agreement to be taken out by Dendreon (DNDN).

OGS weighing options

OGS had called the Tuesday meeting to vote on a share-for-share offer from Cambridge Antibody(LSE:CAT; CATG). As of Friday's close, CAT's offer now values the proteomics, lipid storage disorder and cancer company at £85.3 million ($134.2 million) (see BioCentury, Jan. 27).

The other bid on the table is a Feb. 26 cash offer from Celltech (LSE:CCH; CLL) valuing OGS at £101.4 million ($162 million).

But there are three other possibilities. One is that a third bidder might emerge. The U.K. press is touting French antibody company Immuno-Designed Molecules, which is partly owned by Medarex (MEDX), as a potential suitor.

Second, OGS shareholders might ask management to wind up the company and give back its remaining cash. This option could give OGS shareholders 10-20% more cash than the CCH offer.

Finally, and perhaps less plausible, is that OGS might acquire another company. The stock closed last week at 195p, and is up 42.5p (28%) from the day before CAT's offer.

"With the increase in its share price, OGS could now be thinking of bidding for another company," said Nomura analyst Sam Fazeli. "But, it would

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