The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Canadian M&A Update: JLL Commences Patheon Bid at USD$2.00 per share

JLL Partners’ bid for Patheon Inc. (TSX: PTI), which has been brewing since December at the same USD$2.00 price, turned into a takeover bid today, with JLL announcing the lockup of shareholders holding 12,581,766 (about 13.8% by my calculation) of the subject shares. 

As we noted in the Monday Deal Review February 23, Patheon has cited a BMO valuation of US$4.20 to US$5.00 per share.

However, with today’s exchange rate putting the JLL offer around CAD$2.57, the current trading price of $2.53 looks like a fairly strong expectation that the bid will succeed.

Update: This is probably an opportune time to mention the Bloomberg article I saw on anti-takeover measures being implemented by public biotechs (hat tip to BIO SmartBrief, who picked it up yesterday).

Suzanne Dingwall actually made a similar point about vulnerable venture-backed public companies a couple of weeks ago.

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4 responses to “Canadian M&A Update: JLL Commences Patheon Bid at USD$2.00 per share

  1. Pingback: Patheon Special Committee Bites its Thumb at JLL’s Bid, Clubs, Bills and Partisans to Follow « The Cross-Border Biotech Blog

  2. Pingback: Patheon Special Committee Bites its Thumb at JLL’s Bid. Clubs, Bills and Partisans to Follow! « The Cross-Border Biotech Blog

  3. Pingback: Monday Deal Review: March 16, 2009 « The Cross-Border Biotech Blog

  4. Pingback: Lonza Emerges as Patheon’s White Knight with $460 Million Bid « The Cross-Border Biotech Blog

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