Bristol-Myers Squibb ups offer for ImClone, goes straight to shareholders

Despite recently having said it would not increase the price it would be prepared to pay to acquire the whole of Erbitux (cetuximab) partner ImClone Systems (Marketletter September 15), US drug major Bristol-Myers Squibb says that it is raising its bid to $62 a share (from $60), valuing the remaining 83% of the biotechnology firm's shares at some $4.7 million.

Revealing its intentions late September 22, B-MS also said that it would commence a tender offer for the outstanding stock, therefore taking its its bid directly to shareholders. News of the increase saw ImClone's shares rise 6.9% to $63.50 in pre-market activity, which analysts believe suggests that the firm will reject this offer as well, especially since its chairman, billionaire investor Carl Icahn claims to have a counter bid of $71 per share.

Although the name of the potential acquirer has not been revealed, there has been speculation that this could be Germany's Merck KGaA, which partners ImClone on Erbitux in non-US markets.