Cypress Bioscience, Inc (NASDAQ:CYPB) jumped nearly 10% in early deals after Hedge Fund Ramius LLC announced a hostile takeover offer of US$4.25 per share (approximately US$163 million).
Ramius offered $4.00 per shares in July, which valued the company at approximately US$150 million, but had failed to secure the support of the company`s board for the offer. This morning, Cypress confirmed that Ramius had increased its offer and would be taking it directly to the company`s shareholders.
Cypress Bioscience is a pharmaceutical company with a number of products, including Prosorba, a medical device for rheumatoid arthritis, and Savella, for fibromyalgia.
The tender offer expires October 13th and is conditional on a number of factors, including tender support being 90% of shares. Ramius already holds around 10% of Cypress Bioscience`s equity.
Cypress has previously rejected Ramius's approaches, saying they undervalue the company.