DUBLIN, April 22 The board of Irish drugmaker
Elan unanimously rejected a formal bid from Royalty
Pharma on Monday, saying the U.S. investment firm's
offer of $11.25 a share grossly undervalues the company.
Royalty launched a cash offer a week ago worth up to $7.3
billion, or $12 per Elan share, improving on an initial proposal
to take over the Dublin-based company and the lucrative royalty
rights on its main drug.
That offer depended on the outcome of a $1 billion share
buyback conducted by Elan last week. Royalty lowered the bid to
$11.25 a share as a result of the pricing of the buyback.