Lily, I note a slight error in the calcs above ($900 million). Specifically:
$1.19 from $0.50 equals a 139% acquisition premium. By comparison, a 239% acquisition premium from $0.50 is $1.70 or $1.19 from $0.35 equates to a 239% acquisition premium.
Worked example:
If post tbi Neuren is trading $0.50 per share but Big Pharma XYZ offers $1.19 per share to acquire Neuren, this means Big Pharma XYZ is willing to pay a 139% acquisition premium ($1.19 - $0.50)/$0.50.
From 50c post tbi and applying the 239% acquisition premium we get $1.70 per share ($1.70 - $0.50)/$0.50.
Alternatively for the $1.19 price target and based on a 239% acquisition premium the sp needs to be $0.35 ($1.19 - $0.35)/$0.35.
NEU Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
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