If you are a current investor in Allos Therapeutics, Inc. (NASDAQ:ALTH)
The investigations by law firms concern whether certain officers and directors of Allos Therapeutics, Inc. (NASDAQ:ALTH)
On Apr. 5, 2012, Spectrum Pharmaceuticals (NASDAQ: SPPI) and Allos Therapeutics, Inc. (NASDAQ: ALTH) announced that they have signed an agreement under which Spectrum Pharmaceuticals will acquire all of the outstanding shares of Allos Therapeutics for $1.82 per share in cash plus one Contingent Value Right (CVR). This CVR entitles Allos stockholders to an additional payment of $0.11 per share in cash if certain European regulatory approval and commercialization milestones for FOLOTYN® are achieved. The upfront portion of the transaction is valued at up to $206 million on a fully-diluted basis, and $108 million net of Allos’ cash balance at the end of 2011.
Additionally, Warburg Pincus, Allos Therapeutics’
However, on July 19, 2011, Allos Therapeutics, Inc. agreed to being taken over by AMAG Pharmaceuticals at a value of $2.44 per NASDAQ:ALTH shares based on AMAG Pharmaceuticals' closing price of $19.07 on July 19, 2011. Under the terms of that proposed transaction, stockholders of Allos Therapeutics, Inc. would have received a fixed ratio of 0.1282 shares of NASDAQ: AMAG common stock for each share of NASDAQ:ALTH common stock they own. However, on October 21, 2011, Allos Therapeutics, Inc. (Nasdaq: ALTH) announced that the Agreement and Plan of Merger and Reorganization entered into by and among Allos Therapeutics, Inc, AMAG Pharmaceuticals, Inc and Alamo Acquisition Sub, Inc. on July 19, 2011, as amended on August 8, 2011, had been terminated and the deal fell apart.
Therefore the investigation for NASDAQ:ALTH investors concerns whether the Allos Therapeutics Board of Directors failed to undertake an adequate sales process, adequately shop the company before entering into any transaction, specifically failed to negotiate the best price to maximize shareholder value, and failed to act in the shareholders' best interests in connection with the proposed sale.
ALTH stocks traded in April 2011 at $3.27 and in January 2011 at even over $4.00, thus well above the current offer. In addition, at least on analyst has set the high target price at $2.50 per share.
NASDAQ:ALTH shares closed on April 5, 2012 at 1.82 per share.
Those who are current investors in Allos Therapeutics, Inc. (NASDAQ:ALTH)
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