OSI Pharma board looking for 'white knight,' as it rejects Astellas' $3.5 billion offer

US drugmaker OSI Pharmaceuticals has formally rejected a $3.5-billion takeover bid from Japanese drug major Astellas, telling shareholders yesterday that the offer was too low and it is seeking alternatives in the form of a 'white knight' rescue.

Astellas has attempted to acquire OSI for more than a year and, after repeated rejections, the Japanese company filed suit to prevent the OSI's board from interfering and proceeded with a hostile bid of $52 per share earlier this month (The Pharma Letters passim).

OSI chairman Robert Ingram said that, 'after careful review and consideration with the assistance of OSI's management and outside legal and financial advisors,' the company's board has unanimously rejected the unsolicited, conditional tender offer from Astellas US Holding, and unanimously recommends that OSI stockholders reject the offer and not tender their shares into the offer.