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Bristol-Myers Squibb to Acquire Kosan Biosciences for 10.33 Times Revenue

The Deal: Bristol-Myers Squibb Company has entered into a definitive agreement to purchase Kosan Biosciences Inc. for $5.50 per share in a cash tender offer. Under the terms of the agreement, if a majority of Kosan shares are tendered, Bristol-Myers will acquire the remaining untendered shares for $5.50 per share. Bristol-Myers estimates the transaction value at approximately $190 million after the deduction of Kosan's projected net cash balance at June 30, 2008, when the deal is expected to close. The deal has been unanimously approved by the boards of both companies. Kosan has also agreed not to solicit competing offers for the company.

Discussion: Kosan Biosciences is a development-stage ...

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