Elan will complete its asset disposal programme by mid-year, six months ahead of schedule, and expects to raise more than the targeted $1.5 billion (€1.4 billion), its chairman, Dr Garo Armen, said yesterday.
Accompanying Elan's new chief executive, Mr G. Kelly Martin, on a tour of the group's Irish operations, he also said the company would retain its corporate headquarters in Ireland.
Speculation that Elan would abandon its Irish roots grew after Elan said Mr Martin would be based in San Diego, California. Elan has been headquartered in the Republic since it was founded in a bungalow by Mr Don Panoz 34 years ago.
But Mr Martin said Lincoln House in Dublin would remain Elan's headquarters and that many key functions would be retained here, while the majority of board meetings would also be held in the Republic.
It will also maintain its manufacturing facility in Athlone but is looking at maximising its use of the plant by using extra capacity to service third parties.
Elan also dismissed speculation that Mr Martin's appointment signalled any intention to sell off or break up the company.
"We are not interested in dressing up this company for sale," Dr Armen said, noting Mr Martin was not a banker or a financial engineer but came from an operations background at Merrill Lynch.
Meanwhile, Dr Armen believes the company's asset disposal programme will deliver ahead of expectations.
"There are several things that will get us to our target, certainly by mid-year," he said.
He declined to say what Elan now hoped to raise but said it would exceed the $1.5 billion originally targeted.
"If it was only going to be by $100,000, I wouldn't say it. It will be a meaningful number," he added.
Mr Martin said that the company hoped "to have evidence and an announcement of significant progress sooner rather than later".
Elan declined to say how it planned to deal with a $1 billion convertible bond that matures in December but Dr Armen said the company would not redeem it for shares "at these prices".
However, he declined to comment on rumours that the company had already started to address the issue by buying $300 million of the debt in the open market.
Mr Martin, who took a pay cut to join Elan, replaces Mr Donal Geaney who stepped down as chief executive last July following the collapse in the company's share price.
Mr Geaney, and former finance director Tom Lynch, remain with the company but Mr Martin declined to comment yesterday on their positions.
