All eyes will be on AIM-listed pharma firm Clinigen next Tuesday when investors vote on its £1.2billion takeover by private equity shark Triton Investment Management.
The 883p per share cash offer needs to win the backing of at least 75 per cent of voting shareholders. However, the bid is under pressure by notorious activist Elliott Management.
The US hedge fund – Clinigen’s largest shareholder with a 10.5 per cent stake – has been pushing for Triton to raise its offer on the grounds that the current deal undervalues the group.
Other activist funds, Sparta Capital and Carlson Capital, are also thought to be aiming for a higher offer, despite the bid securing the unanimous backing of Clinigen’s board. Triton’s swoop is also supported by shareholder advisory firms Institutional Shareholder Services (ISS) and Glass Lewis.
The bid was a 41 per cent premium to Clinigen’s share price at the start of December, before the offer period began.
However, as of Friday’s close the shares were trading at 905p, suggesting some investors believe a higher offer could emerge.
The takeover vote follows a difficult period for Clinigen, which posted a shock profit warning last June and has also changed its chairman and finance director. Its woes have been blamed on the pandemic.
Opponents of the deal are thought to be concerned that the acquisition will be rushed through before the company bounces back from the effects of Covid-19.
