mail@shareholdersfoundation.com
SAN DIEGO, CA (Shareholders Foundation) – Bristol-Myers Squibb Co announced on last Thursday to acquire Medarex inc. for $2.4billion. An angry investor has filed a proposed class action lawsuit in the United States District Court of New Jersey on behalf of current investors of Medarex inc. (Public, NASDAQ:MEDX)
If you are currently an investor in shares of Medarex inc. (Public, NASDAQ:MEDX)
Email: mail@shareholdersfoundation.com
Or call us at: +1 (858) 779 - 1554
According to the complaint the plaintiff alleges that Medarex, certain members of the board of directors of MEDX breached their fiduciary duty by attempting to sell Medarex to Bristol-Myers Squibb Co without properly engaging in a competitive bidding process for the sale and during a period of unusual market instability that has driven down the price of Medarex stock for macroeconomic reasons unrelated to the fundamental value of the Company.
Bristol-Myers Squibb Company (NYSE:BMY) and Medarex, Inc. (NASDAQ: MEDX) announced on July 22, 2009 that “the companies have signed a definitive merger agreement providing for the acquisition of Medarex by Bristol-Myers Squibb, for $16.00 per share in cash.” Furthermore the companies said, that “the transaction has been unanimously approved by the boards of directors of both companies”.
According to the complaint the plaintiff alleges that the proposed acquisition is a “unfair process and at a inadequate and unfair price” and therefore the defendants breached their fiduciary duty of loyalty, independence and fair dealing owed to the investors of Medx and rather acted “ to put their person interests ahead” and “have take steps to avoid a competitive bidding process” by including in the merger agreements provisions a “no shop –provision”
The Shareholders Foundation thanks and appreciates the assistance of a fellow shareholder of Medarex who has made the complaint exclusively available to us. The investor informed us also that there is a strong voice of long term investors of Medarex, who strongly oppose the proposed acquisition as they think that the CEO of Medarex Howard Pien joined the company at a higher price then the now offered price not too long ago and that the acquisition will mainly benefit the directors and not the shareholders. The investor said that the Medarex investors a enraged also about the fact that “Medarex has a substantial amount in cash on hand” without recognizing it accordingly within the process of the present takeover evaluation, that “Medarex is close to become a major biotech player”, and “Medarex besides others was already in collaboration with BMY before the merger was announced”.
Medarex, Inc. , located in Princeton, NJ, is a biopharmaceutical company focused on the discovery, development and commercialization of human antibody-based therapeutic products. The Company, along with its partners, is developing fully human antibody therapeutics for a range of diseases through the use of its UltiMAb technology platform for generating antibodies. Medarex inc. reported in 2007 Total Revenue of $56.26million and in 2008 $52.29million. Shares of Medarex inc. (Public, NASDAQ:MEDX)
Those who currently are investors in Medarex inc. (Public, NASDAQ:MEDX)
Email: mail@shareholdersfoundation.com
Or call us at: +1 (858) 779 - 1554
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-
Fax:+1-(858)-
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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