Amylin rejected $3.5 billion Bristol offer: Bloomberg
(Reuters) - Shares of Amylin Pharmaceuticals Inc AMLN.O rose as much as 51 percent on Wednesday after Bloomberg News reported the company rejected a $3.5 billion unsolicited takeover bid from Bristol-Myers Squibb Co BMY.N.
Bristol-Myers proposed an acquisition at $22 a share in a letter to Amylin, which the board turned down last month, according to Bloomberg, which cited two people with knowledge of the matter.
Bloomberg said Bristol-Myers has not approached Amylin, which makes the diabetes drugs Byetta and Bydureon, since the rejection. Spokeswomen for Bristol-Myers and Amylin said they "do not comment on market rumors or speculation."
Amylin has been considered a possible takeover target for some time, with some analysts speculating AstraZeneca Plc (AZN.L: Quote) might be an interested buyer.
Tim Anderson an analyst at Sanford Bernstein said recently he believed an Amylin acquisition would fit well and work financially assuming AstraZeneca paid a 30 percent premium to the stock price plus $1.5 billion for an outstanding promissory note and convertible debt, which would have valued Amylin at $4.5 billion.
The diabetes sector is one of the fastest-growing in the drug industry due to rising rates of obesity. More than 300 million people worldwide suffer from diabetes, including nearly 26 million Americans. They run a high risk of heart disease, stroke, kidney failure, blindness and limb loss.
Joshua Schimmer, an analyst at Leerink Swann, said in a research report on Wednesday that he believes Bristol-Myers "may not be the strongest bidder, given its weaker presence in the diabetes space in Europe and emerging markets."
Companies like AstraZeneca could drive greater value of Amylin's diabetes franchise on a global basis.
"As such, we believe shares have a reasonable floor, the company has a legitimate chance of finding a higher bidder," he said. Continued...