Just think. Biotech firm MedImmune (MEDI) only put itself into play two weeks ago. Former raider turned activist Carl Icahn had threatened the company with a proxy war if its did not offer itself on the M&A market. The company is being bought by AstraZeneca (AZN) for $15.6 billion. In cash.
The deal is a 53% premium over where the shares traded before the company said it might be for sale.. But, the AZN pipeline for new drugs is weak, and the deal helps solve that. It is, however, hard to imagine that a public company was undervalued by a third and that only an auction could reveal that disparity in value to the market. MedImmune’s shares have not traded above the $58 buyout price since late 2000.
Perhaps the management and board at Motorola (MOT) are watching. Icahn may not be well liked. But, he does make shareholders, including himself, money. MOT does not want him on their board of directors, but, a fellow who can help get a 53% premium for anything is worth having around.
Douglas A. McIntyre can be reached at [email protected]. He does not own shares in companies that he writes about.
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