RUMOR BOOSTS AMGEN; STOCK RISES AFTER MAGAZINE REPORT MENTIONS DUPONT INTEREST.Byline: Ben Sullivan Daily News Staff Writer Shares in biotechnology specialist Amgen Inc. rose 6.1 percent Friday after a published report said chemicals giant DuPont is considering a bid for the company. But as investors headed into the Memorial Day weekend, skeptics of a DuPont-Amgen merger began to surface, chief among them officials at the two companies. ``We've said all along we continue to believe that the best way to maximize shareholder value is by remaining independent,'' said David Kaye David V. Hope (born 14 October 1964), known professionaly as David Kaye, is a Canadian actor who is better known and revered for his work as a voice actor. Career , a spokesman for Amgen, the largest publicly traded firm headquartered in Ventura County. News of a possible takeover first appeared in Business Week magazine, where an unnamed money manager said officials at the two firms had informally discussed a deal. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the magazine, DuPont is considering a $25 billion, or $95 per share, bid for Amgen. The report surfaced after the close of U.S. markets Thursday, but when trading resumed Friday morning, Amgen shares shot up as much as $5 - or 8 percent - on the news. The stock lost some of that ground in midday trading but still finished up $3.75 at $65.187. While generating extreme interest among investors - more than 11 million shares traded hands Friday, or roughly five times its average daily volume - some analysts questioned whether such a deal is really imminent. ``It's possible, but I think highly unlikely,'' said Robert LeBoyer, an analyst at Genesis Merchant Group Securities in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . What makes an acquisition plausible, LeBoyer said, is the fact that Amgen is experiencing slowed growth in sales of its two standard-bearer drugs and has no blockbuster products near completion to make up the difference. Together, the two drugs generate more than $2 billion in sales for Amgen annually. In addition, DuPont has said it plans to expand its life sciences division, which currently generates about 18 percent of the company's revenues. Within five years, drugs and biotechnology will account for one-third of sales, officials at the Wilmington, Del.,-based conglomerate say. To that end, DuPont earlier this week agreed to buy drug maker Merk & Co.'s stake in a biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. joint venture the firms operate. Still, with 10 to 12 drugs in the works, Amgen has one of the strongest biotech war chests around. While it faces another year or two of sluggish sales and an arguably ar·gu·a·ble adj. 1. Open to argument: an arguable question, still unresolved. 2. That can be argued plausibly; defensible in argument: three arguable points of law. depressed stock price, Amgen could enjoy a windfall windfall An unexpected profit or gain. An investor holding a stock that increases greatly in price because of an unexpected takeover offer receives a windfall. on both counts in the coming decade, LeBoyer said. ``They view themselves as on the cusp of a whole new slew of products,'' LeBoyer said. ``They're not a company I'd see looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. an acquirer.'' Ultimately, however, if an offer is made it will be left to institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. to accept or decline it, said analyst Eugene Melnitchenko at Sutro & Co. in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. . ``Amgen is heavily owned by institutional investors and institutional investors would probably welcome a $95-a-share bid,'' Melnitchenko said. ``The company has the usual poison-pill stuff, but it probably wouldn't be an issue because management itself doesn't own that much stock anymore.'' Indeed, institutional investors hold approximately 53 percent of Amgen. The largest in-house shareholder is board member William Bowes, who owns 2.35 million shares, or less than 1 percent of the firm. CAPTION(S): Chart Chart: RISING INTEREST Share of Amgen rose 6.1 percent Friday on rumors For other uses, see Rumor (disambiguation). Rumors is a farcical play by Neil Simon. At its start, several affluent couples gather in the posh suburban residence of a couple for a dinner party celebrating their tenth anniversary. of a possible DuPont bid. The company's stock has risen 39 percent in four months. SOURCE: Bloomberg News Daily News |
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