Possible Arbitrage Play Develops as Amgen (NASDAQ: AMGN) buys Micromet (NASDAQ: MITI) - Howard B. Arnn (01/26/12)

This morning before the start of trading on the New York Stock Exchange and Nasdaq Amgen (NASDAQ: AMGN) announced that it was purchasing biotech company Micromet Incorporated (NASDAQ: MITI) for a blockbuster $1.16 billion acquisition.

Micromet announced that it also agreed to the buyout and shareholders will receive $11 in cash per every share that they own.

On that news MITI shares exploded for a nice gain of over 31% on the trading open, which I'm sure brought much joy to investors in the company.

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What makes the deal attractive for Amgen is that it will give them control of the drug blinatumomab, which Micromet has been developing to treat lympgoblastic leukemia and non-Hodgkins's lymphoma. It is in a Phase 2 clinical trial.
MITI shares have noted trade at $11 per shares in 2006 and have been below the $9.00 level for the past twelve months.

At the moment MITI is trading below $11 at $10.91 so it is proving a little arbitrage play for people who want to take advantage of it.

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