Eli Lilly has completed its tender offer for ImClone Systems. I had this one in my simulated portfolio. Here’s how I made out:
Entry Date: 10/10/2008
Entry Price: $65.00
Tender off price: $70.00
Deal closed: 11/24/2008
ROI: 7.69%
Annualized Return: 62.9%
Not bad! If I had added this one to my real money port, I most likely would have been in for [...]
It looks like the ImClone deal might be making strides to get completed. I mentioned last week that I thought the deal was in danger of getting done. It was $65/sh then…. now it is above $67… the spread is closing.
From this article fin TheStreet.com:
Eli Lilly said Tuesday that it has commenced a [...]
Target: ImClone Systems (IMCL)
Deal: $70/share
Current Share Price (10/10/2008): $65
Acquirer: Eli Lilly and Co.
Notes:
The $70/sh offer beat out another offer of $62/sh from Bristol-Myers Squibb.
Current arbitrage spread: $5/sh
Seems like a consensus is growing that this deal might not happen.
But the deal immediately raised eyebrows when Lilly executives revealed that as much as half the cash will [...]
