August 26, 2011 / 5:11 PM / 8 years ago

Pfizer sticks to $6/share offer for Icagen

A view of the Belgian headquarters of U.S. pharmaceutical giant Pfizer, in Brussels January 23, 2007. REUTERS/Francois Lenoir

(Reuters) - Pfizer Inc (PFE.N) has informed Icagen’s ICGN.O board that its best and final offer price for the biopharmaceutical company was $6 a share and that it would not pay more.

In a letter to Icagen on August 26, Pfizer said it would not raise its offer even if a majority of the Icagen shares are not tendered.

On August 11 Icagen’s two shareholders Merlin Nexus and New Leaf Partners, who own more than 10 percent stake in the company, opposed the $56 million takeover bid by Pfizer saying the offer price was too low.

The company said it expected Icagen shareholders to tender shares on “the recognition that $6 is a full and fair price.”

On Thursday, Merlin Nexus and New Leaf Partners said conservative estimates valued Icagen’s pain programs alone at as much as $100-$165 million.

Merlin Nexus holds 8.5 percent stake in Icagen, while New Leaf Partners owns 2.26 percent.

Icagen shares were trading at $6 on Friday on Nasdaq. Pfizer was up 1 percent at $18.17 on the New York Stock Exchange.

Reporting by Shravya Jain in Bangalore; Editing by Roshni Menon

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