A series of strongly worded letters and statements from merger arbitration funds are making their way to the office of Federal Treasurer Jim Chalmers, warning his signal of intent to kill the $672 million Mayne Pharma takeover bid could undermine the stability and integrity of Australia’s capital markets and make offshore investors avoid Australia altogether.
On Friday, Chalmers argued the takeover was contrary to the national interest and would hurt the economy because the bidder had threatened to close Mayne’s Adelaide manufacturing plant, causing Mayne’s shares to crash 31.5 per cent to $4.25 per share. Cosette Pharmaceuticals’ acquisition price is $7.40 per share.
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