Following the denial of an acquisition offer from Royalty Pharma on April 22 equal to $11.25 a share, or less, for all of Elan's (NYSE: ELN ) outstanding shares, a revised offer from Royalty of $12.50 a share has also been rejected, Elan announced today.
In its statement, Elan commented that the reason the board of directors unanimously agreed to reject Royalty's bid was because it "substantially undervalues the company." Elan shareholders will receive a circular and a notice of an "Extraordinary General Meeting (EGM)" that will be held on June 17, 2013. Until the EGM is held, Elan shareholders are, "strongly and unequivocally advised to take no action" on Royalty's acquisition offer, according to the press release.
In response to Royalty's bid, Elan chairman of the board Robert Ingram said, "This offer is no more than an opportunistic attempt to acquire our company at a substantial discount at our Shareholders' expense."