Affymetrix Dives After Rejecting $1.5 Billion Origin Offer

By | March 21, 2016

Scalper1 News

Genetic-analysis company Affymetrix ( AFFX ) on Sunday rejected a $1.5 billion, $16.10 a share offer from Origin Technologies, saying it will stick with its planned $14-a-share takeover  by Thermo Fisher Scientific ( TMO ). Affymetrix shares dived 10.3% to 14.35 in morning trade on the stock market today , Shares of Affymetrix hit an eight-year high  Friday on Origin’s offer, soaring 14% to 15.99. Affymetrix has traded at or just above the Thermo Fisher Scientific bid of 14 since Affymetrix agreed to the offer on Jan. 8. Affymetrix said “Origin appears to be a newly-formed shell entity with no assets of which Affymetrix is aware, and whose sole source of funding for the proposed transaction is $1.5 billion in potential debt commitments.” That would be “materially short” of the funds needed to actually complete the deal, said Affymetrix, citing share compensation, a termination fee for Thermo Fisher Scientific and other items. Thermo Fisher agreed with Affymetrix, issuing a statement that it sees its bid as superior. Thermo stock fell 21 cents to 139.79. Origin Technologies was formed by a group of ex-Affymetrix executives with the purpose of buying the company. Origin President Wei Zhou, a former senior vice president at Affymetrix, also started genomics company Centrillion Technology in 2009. Wei and said that Origin has the option of combining with Centrillion after acquiring Affymetrix. Scalper1 News

Scalper1 News