Tomahawk, WI 7/31/2013 (Basicsmedia) – There has been talk on the possibility of Is Elan Corporation, plc (ADR) (NYSE:ELN) getting acquired by PRGO in a deal expected to be worth $8.6b. The question to consider is whether ELN is fully prepared for this takeover or not. This is a question which can best be answered by taking a close look at what ELN has been saying, and the information it has already released to its shareholders. This article seeks to examine these details and determine how prepared ELN is for this massive deal or takeover.
ELN, which is an Irish drug maker, has its headquarters in Dublin, Ireland. The company was founded in 1969 and currently boasts of around 225 employees who are responsible for putting this company where it is. It mostly operates in the healthcare sector, and also within the drug delivery industry. It has offices in the U.S, Ireland and other nations as well. It is closely associated with the development of ELND005, which is still in the trial stage, and the industry waits to see the outcome of this project.
Is ELN Prepared for this Takeover?
ELN put itself in the market for acquisition once it determined that the company which had placed a bid for it, wasn’t offering the kind of deal it was really interested in. The offer it has received from Perrigo Company is worth 10.5% of what ELN received at the close of business on Friday last week. This offer appears to be working miracles for ELN which has thus far seen its shares rise by more than 4% as at the start of Monday morning, which was July 29, 2013.
Because of the way in which the market is responding to this offer for ELN takeover by Perrigo Co, there is every reason to believe that Elan Corporation, PLC is prepared for the deal. It is sending out the right signals to its shareholders and eh rest of the market as a whole to show that it is a willing party in this deal. This is not a case of a hostile takeover as has been clearly demonstrated by ELN’s stock performance in the latest quarter.
This image shows the huge recovery ELN stock price has enjoyed. It recovered from the lows of 2012, to thee highs of 2013. The image is courtesy of http://finance.yahoo.com/q/bc?s=ELN+Basic+Chart.
ELN seems to be on the recovery path where stock price is concerned. Thus far, in 2013 it hasn’t suffered or gone through low prices which appeared to have been the norm in 2012. ELN is quoted at NYSE and it has always enjoyed not so rosy prices at this stock exchange. However, the current prices of around $15.46, and which appears to be gravitating towards the $16.00 mark, is quite high and beyond what ELN has managed to attract for a very long time. Once again, this is indicative of its preparedness for the deal.
This is the right time to be holding ELN stock. If the merger goes through, and each shareholder is paid the $16.50 per share which Perrigo Co has offered, it will present a very good opportunity of making some profit. Therefore, this is a deal which I would advice ELN shareholders to look forward to, unless serious legal challenges crop up, of which there seems to be none at the moment.