Cypress Pursuing Alternative Buyout Deal

Shares of San Diego’s Cypress Bioscience gained more than 20 percent in furious trading of nearly 4.8 million shares on Nasdaq—more than eight times the company’s recent average volume—after rejecting a new cash offer from the New York-based Ramius group of funds. In a statement today, Ramius and affiliates of Royalty Pharma Finance Trust said they had negotiated the terms of a definitive merger agreement with Cypress over the past few days at $6 a share—or about $232 million, according to Bloomberg. In its statement, Ramius said it learned Monday night that the Cypress board “had rejected its offer and that the company is pursuing an alternative transaction with a third party.”

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.