Elan (ELN) Will Be a Buyer Not a Seller, Unless Offer Nears $20/Sh - Jefferies

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Jefferies commented on Elan Corp (NYSE: ELN) following yesterday's $11/share bid from Royalty Pharma. The firm said while it was a "low ball" offer they expect the company will be doing the 'offering' as it likely remains independent and deploys its ~$4 billion cash war-chest. This could change if a bidder is prepared to get closer to $20 per share, they said.

The firm issued new estimates which decline post-Tysabri restructuring but don't reflect accretive uses of the cash nor $1B share buyback. FY13 goes down from $0.46 to $0.09 and FY14 goes from $0.65 to $0.13.

The firm is maintain a Buy rating and $14 price target on ELN.

For an analyst ratings summary and ratings history on Elan Corp click here. For more ratings news on Elan Corp click here.

Shares of Elan Corp closed at $11.14 yesterday, with a 52 week range of $9.37-$15.27.

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