Korea's Arigene fails to finance deal to buy Fuzeon maker Trimeris

Korean health care and medical equipment maker Arigene has informed USA-based Trimeris that it intends to terminate the tender offer made last October for all of Trimeris' outstanding shares of common stock because it was unable to secure sufficient financing for the tender offer, valued at some $81 million, or $3.60 a share, which expired on December 28, 2009.

Shares of Trimeris fell 20% to $2.55 in pre-market trading on December 29. The stock, through the previous day's close, has more than doubled during 2009.

Shortly after entering into the November 17, 2009, amendment to the Merger Agreement which extended the tender offer to the late December date, Trimeris obtained payment of the $12 million reverse termination fee due under the deal. Notwithstanding, Trimeris will retain the benefit of the fee, net of transaction, advisors' and legal costs incurred in connection with entering into the agreement. Trimeris is evaluating its other rights and remedies under the accord given the present circumstances.