Elan Corporation PLC (ELN) Shareholders Approve Buyback as Royalty Pharma Fight Heats Up
4/12/2013 7:12:37 AM
Irish drugmaker Elan won strong approval from shareholders for a $1 billion share buyback as it seeks to keep them on side and stave off a takeover approach from U.S. investment firm Royalty Pharma. The buyback, priced between $11.25 and $13.00 per share, was supported by 99.2 percent of shareholders on Friday. The company was returning cash to investors after the $3.2 billion sale of its interest in multiple sclerosis drug Tysabri. Royalty may sweeten its $11 per share proposal by paying more via a contingent value right (CVR) if Tysabri, which Elan still receives royalties for, hits certain sales milestones, two people familiar with the matter told Reuters.