Avoro Capital Releases Presentation Detailing Why Acceleron Shareholders Should Not Tender Into Merck’s Inadequate Offer
Believes Now Is the Wrong Time to Cash out of Acceleron, Given Company’s Strong Momentum and Near-Term Inflection Point Coming from Phase 3 Data
Sees Continuing as Standalone Entity as Clearly Superior Path for Acceleron
Highlights What It Believes Was a Flawed and Inadequate Sale Process, Including Not Pursuing Other Strategic Alternatives
Avoro Stands Ready to Support an Independent Acceleron
The presentation is available at: https://www.businesswire.com/news/home/52526996/en.
As highlighted in the presentation, Avoro believes that:
- Now is the wrong time to cash out of Acceleron: Significant value will be created in one year or less after the STELLAR phase 3 trial data is available. Other major shareholders agree.
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Merck’s offer does not represent fair value for Acceleron: The implied valuation based on precedent transactions is much higher than the
per share Tender Offer price. Sell side analysts and several other investors agree that the price is too low.$180 - Acceleron’s Board used a flawed process in reaching the deal: The Board only approached three potential buyers and seemingly did not pursue any other strategic alternatives. In fact, the Board appeared more focused on serving management’s interests by providing last-minute tax gross-ups and increased severance payments to Acceleron executives.
- Avoro stands ready to support an independent Acceleron: Avoro would stand ready to take the steps necessary to help modify the Board’s composition and add directors with relevant experience and expertise to create improved shareholder.
Avoro reiterates that it will not tender its shares into the
About
Forward-Looking Statements and Additional Information
This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts and may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “will be” and similar expressions. These forward-looking statements include, without limitation, statements regarding the planned completion of the transactions contemplated by the Tender Offer. Although Avoro believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Avoro,
View source version on businesswire.com: https://www.businesswire.com/news/home/20211109006605/en/
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