TMCnet News

Robbins Arroyo LLP: Acquisition of Ardelyx, Inc. (ARDX) by Multiple Acquirers (Private) May Not Be in Shareholders' Best Interests
[July 15, 2016]

Robbins Arroyo LLP: Acquisition of Ardelyx, Inc. (ARDX) by Multiple Acquirers (Private) May Not Be in Shareholders' Best Interests


Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of Ardelyx, Inc. (Nasdaq: ARDX) by Deerfield Management Co LP, First Manhattan Co, DAFNA Capital Management LLC, RA Capital Management LLC, Cormorant Asset Management LLC, Rock Springs Capital Management LP, New Enterprise Associates, Australia's Future Funs, Quadrille Capital, EcoR1 Capital, and Perceptive Advisors ("the Acquiring Companies") (Private). On July 15, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which the Acquiring Companies will acquire Ardelyx. Under the terms of the agreement, Ardelyx shareholders will receive $8.73 for each share of Ardelyx common stock.

View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/shareholders-rights-blog/ardelyx-inc/



Is the Proposed Acquisition Best for Ardelyx and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Ardelyx is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.


As an initial matter, the $8.73 merger consideration represents a premium of only 1.70% based on Ardelyx's average one month closing price. This premium is significantly below the average one month premium of nearly 82.65% for comparable transactions within the past three years. Further, the $8.73 merger consideration is significantly below the target prices of six analyst firms, including the target price of $24.00 set by an analyst at Wedbush on August 17, 2015, the target price of $21.00 set by an analyst at Ladenburg Thalmann & Co. on March 31, 2016, and the target price of $21.00 set by an analyst at JMP Securities (News - Alert) on March 09, 2016. In the last three years, Ardelyx traded as high as $35.48 on December 4, 2014, and most recently traded above the merger consideration - at $9.12 - on July 14, 2016.

In light of these facts, Robbins Arroyo LLP is examining Ardelyx's board of directors' decision to sell the company now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.

Ardelyx shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. Ardelyx shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.


[ Back To TMCnet.com's Homepage ]