Lantheus Holdings’ (LNTH -20.9%) all-stock deal to buy Progenics Pharmaceuticals (PGNX +9.8%) substantially undervalues the target company, says one of Progenics’ biggest shareholders.
In a filing, Velan Capital says selling the company at a “massive discount” (about $519.6M overall) is an abandonment of fiduciary duties.
It’s a “value-destructive” deal that comes in the
middle of Velan’s consent solicitation to reconstitute a majority of the
board, Velan says.
“We believe Progenics’ announcement today to sell
the Company to Lantheus substantially undervalues the Company and is a
transparent and shameful maneuver attempting to prevent the voices of
stockholders from being fairly heard,” Velan writes.
It’s seeking to add five fully independent
directors to the board before the Lantheus transaction moves forward,
and wants to replace CEO Mark Baker.
https://seekingalpha.com/news/3503507-progenics-activist-calls-buyout-deal-value-destructive
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