ICN Sues to Block Ribapharm Provision

ICN Pharmaceuticals Inc. of Costa Mesa filed a lawsuit to block a poison pill that Ribapharm Inc. created to obstruct ICN’s takeover bid. ICN owned all of Ribapharm until 19.9% of its shares were spun off in an initial public offering last year.

ICN submitted a tender offer last week to buy back the shares, but Ribapharm’s board objected, saying that the $168-million offer was inadequate.

The suit was filed in a Delaware Chancery Court. Board members of Ribapharm, also in Costa Mesa, were unavailable for comment. Ribapharm shares closed at $6.52 on the New York Stock Exchange, down 5 cents. ICN, whose shares have risen 11% since it announced plans to reacquire Ribapharm stock, closed at $16.58, up 28 cents, also on the NYSE.