THOUSAND OAKS (dpa-AFX) - Onyx Pharmaceuticals Inc. (ONXX) Sunday confirmed it received an unsolicited takeover proposal from Amgen Inc. (AMGN) for $120 a share in cash. However, the drug maker rejected the proposal as 'the price proposed by Amgen significantly undervalued the company.'
Meanwhile, Onyx said it is looking for other potential acquirers who may have an interest in the company.
Onyx rejected Amgen's takeover offer after evaluating the proposal with the assistance of its financial and legal advisors. The company said it reached a conclusion that bid significantly undervalued Onyx and its prospects, and was not in the best interest of Onyx or its shareholders.
Onyx said that based on interests received from other third parties and the recent proposal from Amgen, the company's board has authorized its financial advisor to contact potential acquirers who may have an interest in the company.
'We are actively exploring the potential to combine Onyx with another company as an option to create additional value for Onyx shareholders,' Chief Executive Anthony Coles said in a statement.
California-based Onyx added it does not intend to disclose additional information on Amgen's proposal or the process by which the board will consider other proposals.
Onyx shares had surged 26 percent in extended trading on Friday after reports of Amgen's acquisition offer emerged.
ONXX closed Friday's regular trading at $86.82, up $1.62 or 1.90%, on the Nasdaq.
Copyright RTT News/dpa-AFX
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