ChemGenex (CXS) 65.5c
WOULD you pay 35c for scrip almost guaranteed to be worth only 2c in a few weeks? Well, someone is willing to do just that, snapping up listed options in the leukemia drug developer ahead of an expected friendly takeover by US group Cephalon.
The odd thing is that Cephalon is offering a mere 2c for the options, which are otherwise worthless, given they're exercisable at 68c before February 2012 expiry.
Theory one is that someone is trying to thwart the offer, conditional on 90 per cent take-up of shares and options.
However, as Cephalon notes in this week's bidder's statement, the company "has no intention of waiving the 90 per cent minimum acceptance condition, but has every right to do so".
Theory two is that Cephalon -- which claims already to have its paws on more than 80 per cent of the options -- is buying up to ensure it passes 90 per cent and can clean up the register.
If it's someone else doing the buying, they're not the smartest guys in the room unless they have a very cunning plan.
Meanwhile, the smart dudes have been piling into the ordinary shares, which have traded at a discount of up to 9c (12.8 per cent) to the 70c-a-share offer.
It was feared that Valeant Pharmaceuticals -- which launched a bid for Cephalon -- would spoil the party for ChemGenex, but the cheque should be in the hands of ChemGenex holders within two months. Hold.