Allos Investor Tries To Block $686M AMAG Merger

Law360, Wilmington (July 25, 2011, 5:18 PM EDT) -- An Allos Therapeutics Inc. shareholder lodged a class action in Delaware court Friday over the company's planned $686 million all-stock merger with AMAG Pharmaceuticals Inc., saying the deal would leave Allos investors with a disproportionately small stake in the new company.

Despite Allos having an equal-sized market to AMAG, the company’s board improperly agreed to a deal that offers a miniscule premium and leaves Allos shareholders with only a 39 percent stake after the merger, named plaintiff A.E. Everage Jr. argues.

That cut “is unfair to...
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