R.F. Lafferty Devalues Auxilium, QLT Deal
Auxilium announced on Thursday that it will acquire QLT for 3.1359 shares of Auxilium stock, equivalent to a 25 percent premium based on QLT's stock price on June 25, 2014. The merger is expected to close later in the fourth quarter of 2014.
Despite the deal announced to be a stock-for-stock deal, Auxilium lacking the cash power could mean that acquiring QLT creates an opportunity cost, making the deal less valuable.
Shares of Auxilium dropped 3.93 percent to $20.43 in the middle of Thursday's market hours. Shares have rebounded in Friday's action, up less than one percent to $20.76.
Latest Ratings for AUXL
|Oct 2014||MKM Partners||Downgrades||Buy||Neutral|
|Oct 2014||Mizuho Securities||Downgrades||Buy||Neutral|
|Sep 2014||RBC Capital||Downgrades||Outperform||Sector Perform|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.