Breaking News

Tweet TWEET

MSMB Capital Says It May Not Have Funds to Buy Biotech AMAG

MSMB Capital Management, a New York- based investment fund, said it may not have the financial backing it needs for the attempted $378 million acquisition of AMAG Pharmaceuticals Inc. (AMAG)

AMAG gained 2 percent to $14.68 at the close of trading in New York. MSMB made an unsolicited bid to buy Lexington, Massachusetts-based AMAG in August. It is opposing AMAG’s attempt to buy Allos Therapeutics Inc. (ALTH), a Westminster, Colorado- based biotechnology company.

“Although we expect to obtain financing from such lenders on terms that we deem to be commercially reasonable, there can be no assurance that such financing will be available to us on commercially reasonable terms or at all,” MSMB said in a statement filed today with the U.S. Securities and Exchange Commission.

MSMB said that its $18-per-share offer for AMAG could be modified. The filing is for an AMAG shareholders meeting on Oct. 21 where investors will be asked to vote on the Allos acquisition.

Martin Shkreli, MSMB’s chief investment officer, declined to comment on the filing.

Allos gained 4.8 percent to $1.52.

To contact the reporter on this story: Drew Armstrong in Washington at darmstrong17@bloomberg.net; Sasha Damouni in New York at sdamouni2@bloomberg.net

To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.