Processing Magazine

ImClone receives another buyout offer

September 10, 2008

Biotechnology company ImClone Systems Inc., reported that it has received an offer from a large pharmaceuticals company to buy the company for $70 a share in cash, according to Reuters. The offer would top an unsolicited earlier bid from Bristol-Myers Squibb Company of $60 a share, which ImClone says is too low. Carl Icahn, the billionaire investor and chairman of ImClone''s board, said he has had several conversations with the chief executive officer of a large pharmaceutical company. As a result, the pharmaceutical company has submitted a proposal, subject to due diligence but not to financing, ImClone said. ImClone, which makes the cancer drug Erbitux, said no determination has been made as to whether $70 a share would be adequate. The company''s European partner is Merck KGaA. Its U.S. partner on the drug is Bristol-Myers.