US law firms begin probe of Targanta merger

Two US law firms are investigating potential claims against the board of directors of US drugmaker Targanta Therapeutics, concerning possible  breaches of fiduciary duty and other violations of state law related to  its attempt to sell the group to The Medicines Company.

The investigations by the offices of Howard G Smith and law firm Levi &  Korsinsky focus on the terms of a merger agreement announced last week,  under which The Medicines Company agreed to commence a tender offer to  acquire Targanta's outstanding shares (Marketletter January 19).

Under the terms of the agreement, Targanta shareholders will receive  $2.00 cash for each share, or approximately $42.0 million. As Targanta's  shares traded as high as $8.50 per share as recently as November 17,  2008, the transaction appears to be unfair and an undervaluation of the  company, the law firms state.