Cypress Bioscience finally succumbs to Ramius advances, but at $6.50/share in cash

16 December 2010

In the now nearly five month saga, Cypress Biosciences (Nasdaq CYPB) has done an about turn and accepted the takeover offer from hedge fund Ramius’ firm Ramius V&O Acquisitions arm and Royalty Pharma, albeit at an even higher price. The news saw Cypress’ shares leap 12% to $6.47 in afternoon US trading yesterday.

Cypress Bioscience, which is engaged in the development of innovative drugs to treat central nervous system (CNS) disorders, said that its board of directors has unanimously approved acceptance of Ramius’ revised increased price of $6.50 per share in cash, a 160% premium to its price when Ramius first made its offer. The transaction has a total equity value of approximately $255 million on a fully-diluted basis.

63% premium on original offer

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