€1.5bn ‘lost’ if Elan takeover fails

As much as $2bn (€1.5bn) could be wiped off Elan’s market value if its shareholders reject US firm, Royalty Pharma’s takeover advances next week, brokers have claimed.

Elan’s shareholders meet on Monday to vote on a number of transaction proposals recently announced by the firm — with approval for any of the six items enough to ruin Royalty’s bid.

The US intellectual property company recently upped its bid to $13 per share, plus an additional $2.50 per share based on specific sales targets for the MS drug, Tysabri in the next four years. This would see the Irish firm bought for a minimum of $6.7bn and a maximum of $8bn.