Actelion / Johnson & Johnson: Tendered Vs Untendered Lines

CEO, Manalo LLP

Roderick Manlo

Manalo LLP

We provide event driven research services to hedge fund managers and institutional investors that cover select definitive and pre-announced M&A deals, focusing on identifying and analysing the key upside and downside risks to a particular transaction. We primarily analyse $billion+ takeovers or mergers of publicly-traded European targets, but also look at deals globally to assess when there is a key European angle or aspect that can influence the deal outcome.

With over 16 years’ experience in risk arbitrage and investment banking, we specialise in providing research and advisory services on all facets of risk arbitrage, with particular expertise in:

- Cross-Border M&A
- Hostile Takeovers
- Local Takeover Codes
- Antitrust & Competition
- Financial Valuation
- Shareholder Vote Analysis
- Impacts of Precedent Transactions
- Risk Arbitrage Trading Strategies

Event-Driven

<p>J&amp;J recent declared its tender offer for Actelion successful and we are now in the midst of the additional acceptance period which runs from 6-Apr-17 through 21-Apr-17. For purposes of deal completion, the Uptravi investigation is behind us not only as the European Medicines Agency concluded its investigation on 7-Apr-17 (no issues, no withdrawal necessary), but also as the initial acceptance period has closed (thus J&amp;J can no longer invoke the material adverse effect condition). The companies aim for 2Q’17 completion and thus far, US, Japanese and Israeli antitrust approvals have been attained. Antitrust decisions are still pending from the EC (yet to file), Russia, Taiwan and Turkey.</p><p>For select health care-focused hedge funds, we expect increased interest in Actelion now that the transaction is nearly as safe as it can get. These funds may purchase Actelion to get access to the R&amp;D spin-off Idorsia’s drug discovery operations and its early-stage clinical development assets prior to the listing and on the cheap. That is, until risk arbitrage funds become willing sellers, around CHF 285 per Actelion share.</p>

J&amp;J recent declared its tender offer for Actelion successful and we are now in the midst of the additional acceptance period which runs from 6-Apr-17 through 21-Apr-17. For purposes of deal completion, the Uptravi investigation is behind us not only as the European Medicines Agency concluded its investigation on 7-Apr-17 (no issues, no withdrawal necessary), but also as the initial acceptance period has closed (thus J&amp;J can no longer invoke the material adverse effect condition). The companies aim for 2Q’17 completion and thus far, US, Japanese and Israeli antitrust approvals have been attained. Antitrust decisions are still pending from the EC (yet to file), Russia, Taiwan and Turkey.For select health care-focused hedge funds, we expect increased interest in Actelion now that the transaction is nearly as safe as it can get. These funds may purchase Actelion to get access to the R&amp;D spin-off Idorsia’s drug discovery operations and its early-stage clinical development assets prior to the listing and on the cheap. That is, until risk arbitrage funds become willing sellers, around CHF 285 per Actelion share.

Actelion / Johnson & Johnson: Trading Idorsia, the R&D NewCo Spin-Off

Actelion Ltd

Actelion / Johnson & Johnson: Trading Idorsia, the R&D NewCo Spin-Off