Acelyrin gains as Trium Capital rebuffs M&A deal with Alumis

 Shares of Acelyrin (NASDAQ:SLRN) spiked on Tuesday after Trium Capital LLP, one of its major shareholders, voiced opposition to the company’s previously announced all-stock merger agreement with Alumis (ALUM).

In a letter addressed to a special committee of the Acelyrin (NASDAQ:SLRN) board, the U.K.-based investment said it would not vote for the proposed transaction when the matter is taken up at a special stockholders meeting scheduled for May 13.

According to Trium, the deal under which SLRN shareholders are set to receive 0.4814 shares of Alumis (NASDAQ:ALMS) stock for each Acelyrin (NASDAQ:SLRN) share they hold significantly undervalues the California-based biotech.

“While Acelyrin’s valuation above is that of certainty given the cash, there is much greater risk associated with the Alumis pipeline, so it is unclear to us why Acelyrin should accept a consideration that is so substantially less than its cash value,” the firm wrote.

Trium added that Wall Street’s lack of recognition for Acelyrin’s (SLRN) lead asset, lonigutamab, and tough market conditions don’t justify the company’s decision “to pursue a highly speculative merger at a discount to cash value.”

"We believe this combination is not an attractive proposal relative to the alternatives available to Acelyrin and resultingly not in the best interests of Acelyrin shareholders. We intend to vote against the merger in the upcoming shareholder meeting." 

https://www.msn.com/en-us/money/savingandinvesting/acelyrin-gains-as-trium-capital-rebuffs-m-a-deal-with-alumis/ar-AA1DRBAm