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Cubist: Court ruling won't upend Merck takeout

December 9, 2014 4:04 AM UTC

Shares of Cubist Pharmaceuticals Inc. (NASDAQ:CBST) receded slightly in after-hours trading on Monday after surging $26.24 (35%) to $100.60 on news Merck & Co. Inc. (NYSE:MRK) will acquire the biotech for $9.5 billion, including the assumption of $1.1 billion in debt. The cash offer of $102 per share, or $8.4 billion, represents a 37% premium to Cubist's close of $74.36 on Friday.

The pharma expects the acquisition to add more than $1 billion in sales next year and be "significantly" accretive to non-GAAP EPS beginning in 2016. ...