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Message subject : BIOTECH'S announcement today
This message was posted by bob37 on April 11, 2000 :
I notice an absence of comment on this MERGER in recent times...the following is straight from BIOTECH'S announcement today (items in brackets are my comments).
The news failed to ignite Biotech shares which have been on a rollercoaster since the company (note the announcement says that BII proposed the merger - which I have tried to emphgasize all along) proposed a friendly merger with fellow biotechnology junior Peptech.
Biotech shares closed steady at 34.5 cents today while Peptech also closed steady at 38 cents.
Peptech shares have fallen from a close of 61 cents the day before the merger was proposed while Biotech shares have fallen from a close of 43.5 cents on the same day. (Again, confirming my comments that the announcement has hurt the share price of PTD more than BII).
The merger is proposed to be undertaken through a takeover of Biotech by Peptech to take advantage new tax laws. Hopes of the merger succeeding have faded over recent weeks with Peptech having secured just over 25 per cent of Biotech since the offer was launched in December last year. Despite nearly 2000 of the 3000 shareholders accepting the offer it appears unlikely Peptech will reach the minium acceptance level by the deadline for the offer. Biotech directors, who control nine per cent of the company, are yet to formalise their acceptance of the offer. The directors have indicated they intend to accept. (This is fact - no comment necessary, except that some large shareholders are also still to accept and have stated their intention to).
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