Onyx on auction block after rejecting Amgen bid
Cancer company Onyx Pharmaceuticals Inc. (NASDAQ:ONXX) jumped $44.51 (51%) to $131.33 on Monday after its board rejected an unsolicited offer from Amgen Inc. (NASDAQ:AMGN) but said that the company is open to additional offers. Onyx said it rejected Amgen's bid of $120 per share in cash, or about $8.7 billion based on 72.7 million shares outstanding as of May 3, because the offer "significantly undervalues" the company and was not in the best interest of Onyx or its shareholders. The price is a 38% premium to Onyx's close of $86.82 on Friday, before rumors surfaced of Amgen's bid. However, Onyx said that based upon Amgen's offer and expressions of interest from other third parties, its board authorized financial advisor Centerview Partners to contact potential acquirers. ...