Northern, WI 08/27/2013 (usastockreport) – Amgen Inc. and Onyx Pharmaceuticals Inc. (NASDAQ:ONXX) had finally announced their decision on the acquisition transaction, an agreement under which Onyx would be acquired by Amgen for an aggregate value of $10.4 billion. It had been announced that the Board of Directors of the two companies had unanimously approved this proposal for acquisition and that the process would be completed by the beginning of fourth quarter of the fiscal year. This latest deal aimed at acquiring this largest manufacturer of cancer drugs proves to provide an effective footprint to Amgen in the industry that is rapidly developing and growing in heavy demand.
The price per share for the stock of Onyx Pharmaceuticals Inc. (NASDAQ:ONXX) had been fixed up at $125 which is expected to paid out in a cash transaction by Amgen and it had been noted that Onyx would receive net proceeds at $9.7 billion from the acquisition. However, the securities litigation firm, Brower Piven had announced that it would take up an investigation related to this proposed buyout of the company to ascertain whether the offer is well in the interest of the shareholders.
The lawsuit had been filed to ascertain if there had been any breach of fiduciary duties of the Board of Directors of Onyx Pharmaceuticals Inc. (NASDAQ:ONXX) to the shareholders in unanimously accepting this buyout offer. While the price for acquisition at $125 per share is observed to be a premium of 44% of the closing price of this stock in the exchanges on June 28, 2013, it is worth noting that the analysts at Yahoo had recently fixed up a price target of $160 per share for the stock. It thus puts under question whether the Board of the pharmaceutical major had breached its fiduciary duties by failing to maximize the shareholder value through this buyout offer.