Elan Risking $2 Billion If Royalty Pharma Walks: Real M&A

Elan Corp. shareholders risk losing $2 billion by listening to the company’s board and rejecting Royalty Pharma’s takeover bid.

While Royalty Pharma boosted its unsolicited offer to as much as $15.50 a share this month, at least five analysts covering Dublin-based Elan see the stock falling if that bid disappears, according to data compiled by Bloomberg. UBS AG estimates a 28 percent plunge to $9.70, which would wipe out $2 billion of market value.