Ribapharm Board Spurns ICN Bid
When ICN Pharmaceuticals Inc. replaced the top managers and board members of its rebellious offspring, Ribapharm Inc., in January, it supposedly marked the end of a bitter power struggle over the small biotechnology company.
Maybe not.
Ribapharm’s board on Monday urged shareholders to reject ICN’s unsolicited offer to buy back for $5.60 a share the rest of Ribapharm stock it doesn’t already own.
“The board determined that ICN’s offer is inadequate and not in the best interests of Ribapharm’s public stockholders,” Ribapharm Chairman Daniel Paracka said.
Ribapharm’s stock has traded above $6 a share on the New York Stock Exchange since June 2, and closed Monday at $6.56, up a penny. ICN announced the tender offer June 2 and last week extended the deadline until July 22.
Under founder Milan Panic, Costa Mesa-based ICN sold off 19.9% of Ribapharm stock at $10 a share in an initial public offering in April 2002, with a plan to spin off the remaining 80% at a later date.
In the meantime, dissident ICN shareholders wrested control from Panic and installed Robert O’Leary as chief executive. The Ribapharm spinoff was subsequently halted.
At the time, top Ribapharm executives protested the change in plans. They were later forced out of the company.
On Monday, O’Leary said his company was “disappointed in Ribapharm’s recommendation,” adding that the $5.60-a-share price was fair.
