Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) Under Enquiry For Investors Over Takeover

Ariad Pharmaceuticals Inc.

The acquisition of Ariad Pharmaceuticals, Inc.(NASDAQ:ARIA) is under enquiry over probable wrongdoing. The investigation was pronounced for, who now hold ARIA shares, regarding whether the takeover of company by Takeda Pharmaceutical Company Limited for $24 per share is prejudiced.

The details

Investors who bought shares of Ariad and presently hold any of those Aria shares have definite options and should connect to the Shareholders Foundation. The enquiry by a law firm alarms whether certain Ariad directors violated their fiduciary duties owed to company’s investors pertaining with the proposed acquisition deal.

On January 9, Ariad Pharmaceuticals reported that it has entered into a deal to be bought by Takeda Pharmaceutical under which latter will buy all of the due shares in Ariad Pharmaceuticals for $24 per share in cash, or an aggregate enterprise value of around $5.2 billion,

However, the enquiry concerns whether the proposal is unfair to Ariad stockholders. More explicitly, the investigation concerns whether the company’s Board of Directors commenced an adequate sales procedure, adequately shopped the firm before entering into the deal, capitalized on shareholder value by discussing the best price, and acted in the investors’ best interests pertaining with the projected sale. On January 19, shares of Ariad Pharmaceuticals ended the session at $23.70 per share.

The offer to buy and 14D-9 were submitted for the Takeda acquisition of Ariad Pharmaceuticals. The tender offer ends on February 15, 2017. The $0.25 arb range offers a 16% IRR if the transaction completes on that date.

In the last trading session, the stock price of Ariad gained 0.21% to close at $23.75. The market cap of firm now stands at $4.62 billion. Cowen and Company reaffirmed their buy rating on Ariad Pharmaceuticals shares in a research report issued last week. The research group currently has a $16 price target on the firm’s stock.


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