Bristol-Myers Squibb is increasing its original $60-per-share bid for ImClone to $62 per share and intends to start a tender offer for the 83.4-percent stake in the company that it does not already own. The revised proposal is valued at approximately $4.7 billion.
Bristol-Myers Squibb noted that since it tabled its first bid "there has not been any meaningful dialogue regarding our proposal" and suggested that "delays, combined with ImClone's lack of transparency, have created a protracted period of uncertainty." Bristol-Myers Squibb CEO James Cornelius stated that "particularly in light of the current extraordinary market conditions, there needs to be an orderly and transparent process with a clearly delineated timeline in order to expedite a resolution of ImClone's future.''A rebuffed Bristol-Myers Squibb Co. is trying to entice the shareholders of biotech company ImClone Systems Inc. with a sweetened $62-per-share tender offer.
After being rebuffed by ImClone's board, led by its Chairman Carl Icahn, Bristol-Myers said it was taking the offer directly to ImClone shareholders and beginning a tender offer.
The latest bid comes two weeks after ImClone said it was mulling a competing buyout offer worth $70 per share – roughly $6.1 billion – from an unidentified large pharmaceutical company. A two-week period for that suitor to examine the company is set to expire later this week. Bristol-Myers shares fell 38 cents, or 1.8 percent, to $20.62 in trading Monday. Meanwhile, ImClone shares fell 38 cents, or 1.8 percent, to $59.40 before climbing nearly 4 percent in after-hours trading.