- 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.
Date: October 07, 2019
Source: Seeking Alpha
