Shareholders face ‘no reward’ if Elan bought

Elan has warned its shareholders that they could stand to receive little or no financial reward if US firm, Royalty Pharma succeeds in its attempt to buy the company.

In repeating its assertion that the Royalty bid isn’t in the best interests of its shareholders, Elan said yesterday its investors face “significant harm” if the US company succeeds in gaining ownership.

“If Royalty Pharma surpasses its 50% acceptance threshold but doesn’t achieve 90% acceptance, it may leave remaining shareholders in a publicly traded, illiquid minority ‘stub’ that will be run for the benefit of Royalty Pharma private investors — not Elan shareholders.