Posts Tagged ‘acquisitions’

American Oil and Gas, Inc. (AEZ) – Buzz Stock of the Day

Wednesday, July 28th, 2010

Shares of independent operator, American Oil and Gas, Inc. (NYSE-AMEX: AEZ) were up 9 percent from Tuesday’s closing price, in morning trading on Wednesday after it was announced that oil giant Hess Corp. would acquire the company in an all stock deal worth approximately $445 million. Hess primarily acquired American Oil and Gas, Inc. to expand its holdings in the Bakken oil play of North Dakota. American Oil and Gas, Inc. has properties that span about 68,500 acres in the area.

“This acquisition builds upon our strong land position in the Bakken, leverages our nearby infrastructure and offers operational synergies,” said Greg Hill, President of Worldwide Exploration and Production at Hess in a statement.
Under the terms of the agreement, AOG shareholders will receive 0.1373 shares of Hess common stock for each share they own, placing the total value of the transaction at approximately $445 million. The deal would represent a 9.4 percent premium over American Oil & Gas shares closing price of $6.69 per share on Tuesday. Hess also said it would provide American Oil & Gas with a $30 million working capital credit facility to help the company finance exploration and production activities ahead of the completion of the deal. The deal is expected to close in the fourth quarter of 2010.

“We believe this transaction captures the value that we have been able to create since our initial entry in the North Dakota Bakken play four years ago,” said Pat O’Brien, CEO of American Oil & Gas in a statement. “We are excited about the leverage our stockholders will gain not only to Hess’ compelling Bakken position and developmental activities, but also to Hess’ large and diverse global project portfolio.”

Cypress Bioscience, Inc. (CYPB) – Buzz Stock of the Day

Monday, July 19th, 2010

Shares of drug maker Cypress Bioscience, Inc. (Nasdaq: CYPB) rallied as much as 41 percent from Friday’s closing price, in morning trading on Monday after hedge fund, Ramius offered to buy the company for about $154 million, or $4.00 a share in cash.

Ramius currently owns 9.9 percent of Cypress’ common stock. The offer of $4.00 per share is a 60 percent premium over Friday’s closing price of $2.50.


In addition to the all-cash offer, Ramius also stated  that it would consider an acquisition structure that would allow management to continue the development of the recently acquired antipsychotic drug, BL-1020 if they are able to fund the required financing for the Phase IIb trial themselves or from a third party financing source.

In late June, Cypress Bioscience, Inc. entered  into an exclusive North American license for the development and commercialization of BioLineRx’s novel antipsychotic, BL-1020, a treatment for schizophrenia. Specific terms of the transaction were not disclosed, but the total upfront payment to BioLineRx was $30 million, with total potential clinical and regulatory milestones of up to $160 million through to approval in the United States, potential commercial milestones of $85 million, and a potential additional $90 million associated with approval for additional indications in the United States or for approval in other countries in North America. Cypress also agreed to fund all continuing development activities and pay BioLineRx a royalty based on applicable sales.

Ramius said poor decisions by Cypress management has damaged its stock price and that the company should hold off on making any further acquisitions or licensing deals. Shares of Cypress Bioscience are down about 73 percent over the past 12 months.

In a letter to Cypress management, Ramius said it is “ready, willing, and able to close this transaction expeditiously and expect the board to retain a reputable investment bank to immediately engage in discussions with us and any other potential acquirers to maximize value for all shareholders.”