More Cubist Pharmaceuticals
I closed out my remaining position in Multimedia Games, Inc. (Ticker: MGAM) yesterday by buying back the short Puts. This deal will close in a few days, but I needed some more buying power. I continued to aggressively add to my position in Cubist Pharmaceuticals, Inc. (Ticker: CBST) with an average price of $97.75. This position currently makes up ~ 30% of my portfolio. I have a very strong conviction in this deal closing in a timely manner. Merck initiated the tender offer today as expected with the offer expiring on 01/20/15. It’s not often you encounter such a nice risk reward opportunity.
posted by Money Turtle @ 8:38 AM
9 comments
9 Comments:
More good news on CBST.. Good one
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Yes, good news on the FDA approval after the close. Now just wait for all the pieces to fall into place (regulatory approvals, etc...).
interesting situation developing between CARB and JCOM with JCOM launching a tender offer last week...
CARB - looks like a hostile takeover attempt to get an answer from the board, the risk I see is management pushing back or invoking poison pill.
I looked at this briefly and it is interesting. Looks like JCOM tried to get CARB awhile back and is now making another run at CARB. JCOM wants to talk to CARB, but CARB is making it hard to get. JCOM will probably bump the price and get CARB on friendly terms. How long this takes????
MT - your thesis looks likely, the new CEO's letter was not antagonistic. (it was friendly).
Also, per the release "Consummation of the offer will not be subject to a minimum tender condition, although it will be conditioned on j2 being satisfied, in its reasonable judgment, that it will not be subject to the restrictions of Section 203 of the Delaware General Corporation Law." - $15 buyout is pretty attractive given where the price is, assuming they can't hide behind section 203 and pull the offer...
Any sense of when this tender will close?
If it receives all the regulatory approvals on time, I see the tender closing next week (the 20th) and cash hitting your account by the 23rd or sooner.
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