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Roundup-Elan says no to offer

Tuesday, February 26 08:15:11

Irish biotechnology group Elan has dismissed a proposal from Royalty Pharma to buy the company for $6.5 billion (E5 billion) as "highly opportunistic" and "heavily conditional".

Royalty Pharma announced yesterday it had made a proposal to acquire Elan for $11 (E8.32) per share, a 4 per cent premium to its closing price last Friday.

Management at Elan said the proposal was not "credible", while stressing that it would consider the bid alongside a number of strategic options under discussion over the past year "to the benefit of our public shareholders".

The approach from Royalty Pharma comes after Elan's sale of its interest in multiple sclerosis drug Tysabri to Biogen for $3.25 billion earlier this month.

Elan will return $1 billion to shareholders through share buybacks and plans to reinvest the remaining money into the company with strategic acquisitions and refinancing its existing debt. The Irish Times

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The family of bankrupt businessman Sean Quinn has claimed the insolvency of Irish Bank Resolution Corporation means the courts must urgently lift orders freezing their accounts below E50 million each and preventing them transferring assets in their international property group. The bank's undertaking for damages on foot of which it got those orders is now "valueless", the family claims.

Alternatively, the family says the special liquidators of IBRC must lodge up to US$500 million in court to meet any claim for damages should they win the case. The Irish Times

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Ollie Rehn said he was "surprised" at suggestions that the promissory note deal, which is worth around E1bn a year in savings to the economy, could be used to ease the conditions in future budgets.

"I have heard this has been described in some discussions as windfall gains. I'm a bit surprised by that," he said.

"In Ireland the level of public debt is high, as is the fiscal deficit and this means debt service is very high for Irish citizens. The Irish Independent

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The European Investment Bank (EIB) expects to make E600m in low-cost loans to projects and companies in Ireland this year, its new vice-president Jonathan Taylor has told the Irish Independent. Mr Taylor and senior officials from the EU-controlled bank are in Dublin for a series of meetings, with the hope they can drum up interest in the bank's loans.

The team from the Luxembourg-based EIB are today meeting separately with the three main economics ministers, Michael Noonan, Brendan Howlin and Richard Bruton The Irish Independent

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Centra is planning to create 400 new jobs this year after sales in Ireland hit a record E1.43bn last year. Musgraves, which owns the Centra franchise, said the sales figure was 1.6pc higher than in 2011 on a like-for-like basis. The chain opened 18 new outlets last year but eight stores also closed, according to a spokesman.

Centra said it makes three million transactions a week and remains the country's biggest convenience store brand, ahead of main rival Spar.

New stores

Centra managing director Martin Kelleher said the chain will spend E20m in 2013, opening 20 new stores and creating up to 400 jobs. The Irish Independent