Nice start to the week. The DJIA is up about .68%, but trailing the Nasdaq in a major way...a large reason for the diverging performance is Apple (AAPL)'s performance. That stock is +2% today, and giving no boost to the DJIA.
Among gainers is OSI Pharmaceuticals (OSIP), up a lovely 52% on an unsolicited buyout offer from Astellas Pharma.
OSI's board turned down a $52 bid by Astellas in February, citing the bid as too low. They offered to open up their books to Astellas, in order to justify a higher price, and that resulted in this rather hostile bid.
The Company noted that in February 2010, OSI received an oral proposal from Astellas with a value of $52 per share and OSI's Board of Directors, after consultation with its financial and legal advisors, determined that it was not interested in undertaking a sale of OSI at that price, since it believes Astellas’ proposal very significantly undervalues the Company. In responding to the February proposal, the Company offered to provide Astellas with non-public information which is fundamental to its valuation of OSI. The response to that letter was Astellas' unsolicited proposal. The February 22nd letter from Colin Goddard, Chief Executive Officer of OSI, to Astellas responding to Astellas' oral proposal is set forth below:
I enjoyed meeting you on Friday, February 12th and appreciated our frank and open discussions along with the opportunity to share with you our strategic thinking and the broad range of initiatives we have ongoing to enhance the value of our company for our shareholders. Following our meeting, I briefed my Board of Directors on our discussions, including the $52 per share price at which you said Astellas would be interested in acquiring our Company.
As I had suggested at our meeting, our Board is not interested in undertaking a sale of OSI at that price, which we believe very significantly undervalues our Company. However, I can confirm that we are prepared to provide you with certain non-public information regarding the Company, which is fundamental to our view of the value of OSI Pharmaceuticals. Inasmuch as this information is confidential, our willingness to make it available to your team is subject to your execution of a Nondisclosure Agreement and we have taken the liberty of attaching the form hereto.
We have handled our discussions in an appropriately confidential manner and trust you will do the same.
Very truly yours,
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