Watching Yahoo’s stock price continue to crater might depress Carl Icahn. Luckily, his ImClone bet is going better.
After resisting a $60 a share offer from Bristol Myers Squib at the end of July, Icahn may have found a better deal. An unnamed “large pharmaceutical company” has submitted a proposal to purchase the company for $70 per share, cash. The company, which has the cash on hand, will do its due diligence in the the next two weeks. ImClone did not disclose whether it thought $70 was adequate.
According to Deal Journal, Icahn bought 11.67 million shares in 2006, then valued at $390.5 million. At $70 a share, Icahn would receive $812 million (which would go a ways toward covering his huge Yahoo loss). ImClone shares opened at $68.48 today and have remained near this price.
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