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ox, lucrative seats on the Board of Directors of the newly combined entity.
We believe that we are not alone and that our deep concerns and opposition to the Transaction are shared by Nabi's stockholders as well as Biota's stockholders. In the nearly four months since the announcement of the proposed Transaction, Nabi's share price has declined by over 10% while Biota's has declined by nearly 30%. It seems clear to us that the proposed Transaction has no merit and destroys value for both Nabi and Biota stockholders. We question who benefits from the proposed Transaction and can only come to the conclusion that the Transaction is for the benefit of Nabi's insiders.
AN ORDERLY LIQUIDATION OF NABI WOULD DELIVER GREATER VALUE TO NABI'S STOCKHOLDERS
Mangrove Partners believes that stockholders can receive a minimum of $1.87 per share through an orderly liquidation. Following the modified Dutch Tender Offer, Nabi has $2.40 per share in cash. According to Nabi's amended Merger Implementation Agreement with Biota, Nabi estimates that there would be approximately $0.48 per share in liquidating expenses ($13.5 million), and $0.04 per share in remaining operating expenses ($1.5 million) until September 30, 2012. In contrast, under the terms of the Transaction, Nabi's stockholders would receive only $1.70 per share in value. This would come in the form of $1.59 per share in stock of the combined entity and $0.11 per share in a future dividend or return of capital.
We feel confident that an orderly liquidation will provide a superior return to Nabi's stockholders and is fully within the control of Nabi's management and Board. Mangrove Partners believes that there are superior alternatives to a traditional liquidation by either (1) returning substantially all of Nabi's cash holdings to Nabi's stockholders in the form of a special dividend and then consummating a reverse merger with a company seeking a p
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| SOURCE The Mangrove Partners Fund, L.P. Copyright©2012 PR Newswire. All rights reserved |
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