Mangrove Partners, which holds approximately %5.7 of the outstanding shares of CPEX Pharmaceuticals, has announced that it will oppose the merger of CPEX with FCB, a wholly-owned subsidiary of Footstar Corporation. The merger was announced in early January 2011. According to Mangrove, the $27.25 per share offer for CPEX, which is developing Nasulin intranasal insulin, is inadequate.
In addition to considering the price inadequate, Mangrove questions the CPEX management’s motives for the deal. The company has created a website called CPEXripoff.com on which it has posted its analysis of the deal and what it says are repeated unanswered letters to the CPEX board questioning the merger.
Read the company’s press release.
