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.
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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