Royalty Pharma Monday confirmed that it is increasing its cash offer for Elan Corp., Plc (ELA.L, ELN) to $12.50 per share. The $1.00 per share net cash right has been eliminated.
The New York based company is now offering $4.6 billion for Elan's Tysabri Royalty, representing a 42 percent premium to the $3.25 billion at which Elan sold approximately half of its interest in Tysabri to Biogen.
The company believes that Elan dramatically overpaid in the Theravance Transaction by agreeing to pay $1 billion for 21 percent of selected royalties owned by Theravance when all of Theravance was trading at $3.5 billion.
The increased offer is fully financed, cash confirmed, conditional on Elan Stockholders voting against the Theravance Transaction.
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