I agree with you that it would not be in Merck's interest but our academic interest in what tactics Merck might employ seems to have been overridden by the following term which I have just come across as I read through the agreement: It states:
............................................................................................................................................................................
12 Restriction on acquiring securities
(a) Subject to clause 12(b), until the End Date, (other than as a result of the transfer of shares by the Target to the Bidder under the Scheme) the Bidder must procure that the Bidder Group does not (and must ensure that their Related Bodies Corporate do not) acquire or offer to acquire, any securities or derivatives or property or any right or option to acquire any securities or property of the Target unless it has received the prior written consent of the Target.
(b) The restriction in clause 12(a) does not apply where a person (other than any existing institutional or portfolio investor who is a Target Shareholder at the date of this document) either alone or with its associates: (i) acquires (directly or indirectly) an interest in securities so as to have voting power in 5% or more of Target Shares on issue; and (ii) announces a Competing Transaction, or the intention to propose a Competing Transaction to the Target.
..........................................................................................................................................................................
While VLA in theory could give permission it is difficult to see why it would or why Merck would ask so whoever is buying it is not Merck or any related party. Certainly in the event that it did give permission it would clearly have to advise shareholders.
VLA Price at posting:
$1.66 Sentiment: Hold Disclosure: Held
