Elan’s board has unanimously rejected Royalty Pharma’s revised bid, saying it “substantially undervalues” the company.
On Monday Royalty raised its hostile cash bid for Elan to $12.50 per share and earlier today reduced its acceptance threshold to 50% plus one share, as it sought to gather just enough support to take over the drug firm.
Elan has announced a series of defensive transactions in recent weeks as it seeks to fend off Royalty's bid.
However Royalty Pharma, which buys royalty rights on patented drugs, has said Elan's efforts to reinvent itself through the acquisitions and debt deals were ''hasty'' and ''ill-conceived''.
It has made its new bid conditional on Elan shareholders rejecting the proposed transactions at a meeting due to be held on June 17.
See how Elan shares performed in Dublin trade
Elan Chairman Robert A Ingram said Royalty's latest move was "no more than an opportunistic attempt" to acquire the company for less than it was worth and at the expense of shareholders.
He urged shareholders to take no action ahead of the EGM next month.
