Analyst Thinks Elan (ELN) Should Have Accepted Royalty Offer

This morning it was learned that Elan (NYSE: ELN) rejected an offer from Royalty Pharma. Commenting on the deal, BMO analyst David Maris told Bloomberg he disagrees with management.

"If I were Elan I would have accepted the deal and moved on," he said.

Royalty Pharma at some point will stop raising their bid, and Maris doesn't think another suitor will emerge since Royalty Pharma may be only firms able to fully value Elan.

Firms mentioned include Mylan, Inc. (Nasdaq: MYL) and Forest Labs (NYSE: FRX). In his view, an offer from these companies wouldn't make a lot of sense. I deal may also not be in the best interest Allergan Inc. (NYSE: AGN), since it will not get the full tax benefit.

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