The Official Activist Investing Blog has published its list of activist investments for September:
Ticker | Company | Investor |
ARCW | Arc Wireless Solutions | Brean Murray Carret Group |
ASCMA | Ascent Media Corp | GAMCO Investors |
ATGN | AltiGen Communications | Norman Pessin |
BITS | BitStream Inc. | Raging Capital |
BKBO.OB | BakBone Software Inc | VantagePoint Venture Partners |
BLDR | Builders FirstSource Inc | JLL Partners; Warburg Pincus |
BLDR | Builders FirstSource Inc. | Stadium Capital Management |
CLHI.PK | CLST Holdings | Red Oak Partners |
CNSO.OB | CNS Response Inc | Leonard Brandt |
DCS | Claymore Dividend & Income Fund | Bulldog Investors |
DITC | Ditech Networks | Lamassu Holdings |
EFII | Electronics for Imaging Inc | Blum Capital |
FACT | Facet Biotech Corp | Baupost Group |
FACT | Facet Biotech Corp | Biotechnology Value Fund |
GLOB.OB | Global Med Technologies | Victory Park Capital |
HBRF.OB | Highbury Financial | Peerless Systems |
IMMR | Immersion Corp | Ramius Capital |
KONA | Kona Grill Inc | BBS Capital Management |
MINI | Mobile Mini Inc. | Shamrock Activist Value Fund |
NFL | Nuveen Insured Florida Premium Income Municipal Fund | Western Investments |
PCC | PMC Commercial Trust | REIT Redux LP |
PFIN | P&F Industries | Timothy Stabosz |
PPM | Investment Grade Municipal Income Fund | Western Investment |
PRKA.OB | Parks! America, Inc. | Edla Family Limited Partnership |
SCSS | Select Comfort Corp | Clinton Group |
TESO | Tesco Corporation | LRP V Luxembourg Holdings |
TICC | TICC Capital Corp | Raging Capital Management |
TXI | Texas Industries Inc | Southeastern Asset Management |
TXI | Texas Industries Inc | Nassef Sawiris |
UAHC | United American Healthcare Corp | Strategic Turnaround Equity Partners |
UAHC | United American Healthcare Corp | Lloyd Miller |
VXGN.OB | VaxGen Inc | Steven Bronson |
[…] Greenbackd's monthly list of stocks with activist positions. (Greenbackd) […]
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[…] Greenbackd’s monthly list of stocks with activist positions. (Greenbackd) […]
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It looks like poorer deal for Vaxgen shareholders. After a first look, it seems to me that all they get is the equivalent amount of OXGN stock as VXGN stock (nothing special there besides the headache of having to do DD on OXGN), incentive payment for negotiating an end to the lease, and incentive milestone payment in connection with the awarding of a government contract to Emergent for the anthrax vaccine.
Greenbackd’s analysis values the milestone at zero I believe, so it is likely that there is no incentive there that sweetens this deal (why not just wait for the milestone payment on your own VXGN?). Also, the analysis factors in a rough $4-$5mm obligation (settlement) on the $22mm lease. OXGN is offering up to 2.7mm OXGN shares in connection with settling the lease which works out to 12 cents per VXGN share at the moment. It’s unclear exactly what level of settlement must be made in order to release the full 2.7mm shares, but if we take Greenbackd’s opinion that the stock is undervalued by about 12 cents at the moment, anything lower than a $4-5mm settlement would be a positive for OXGN.
Seems like OXGN is purchasing the company outright for roughly its market value. No premium for the NOL’s? Why would a VXGN shareholder accept the simple conversion of its shares to OXGN (in addition to potential future payments that are likely fairly valued, i.e. they would be received by VXGN shareholders anyway in the event of no deal).
http://investor.oxigene.com/releasedetail.cfm?ReleaseID=415771
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This looks like a flexible deal for vaxgen. VXGN can still entertain higher offers or liquidate if those routes will return more to the shareholders.
Also, 8.5mm shs held in escrow an added benefit of .36 or .37 in addition to the .68 value of the deal at OXGN price of 1.45. Escrow hurdles don’t look too daunting, settlement of lease, collection of milestone payments.
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Any feelings on the acquisition of VaxGen by Oxigene? Looks like an awful deal for VaxGen shareholders. It is a stock-for-stock deal and Oxigene only offered the equivalent of $.68 per share…only $22 million total. Can the activist shareholders block this deal as VXGN looks to be worth more in liquidation? It seems like management wants to preserve their gravy-train.
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