Royalty Pharma drops hostile bid for Elan

MARY CAROLAN

Royalty Pharma has withdrawn its court challenge to the Irish Takeover Panel’s decision requiring Royalty to lapse or withdraw its US$8 billion offer for Elan if any of four resolutions were passed at an EGM yesterday. One of the four was passed.

Mr Justice Peter Kelly had last Friday granted an injunction which effectively kept alive Royalty’s offer for Elan pending the outcome of its judicial review proceedings fixed for hearing tomorrow.

The judge discharged that injunction today after he was told by Maurice Collins SC, for Royalty, the judicial review was not proceeding.

Royalty initiated the case over the Panel’s decision of June 6th last directing that Royalty lapse its increased offer to acquire Elan if either or both of two particular resolutions before the EGM — the ELNDOO5 Resolution and a Share Repurchase Resolution — were passed, but two other resolutions — the Theravance and the AOP resolution — are rejected.

Elan, which put itself up for sale last Friday, had argued the Panel’s decision arose from Royalty’s own decision to attach conditions to its offer.

Yesterday, the Elan EGM rejected a major investment programme proposed by the company but, by a small majority, it approved one of the four resolutions, to return some US$200 million to shareholders via a share buyback.