Benzinga | Nov 2, 2021 10:27AM EDT

Merck Pushes Acceleron Buyout By Refiling For Antitrust Review

* Merck & Co Inc (NYSE:MRK) revealed that it had temporarily withdrawn its premerger notification and report form. The company said it plans to refile today.

* The move will provide the U.S. Federal Trade Commission (FTC) additional time to review the Acceleron Pharma Inc (NASDAQ:XLRN) deal.

* It also gives Merck a reason to extend the tender offer time for collecting the required shares from Acceleron investors.

* The tender offer is now scheduled to expire on November 18, rather than the previous November 10.

* The refiling extends the merger review's waiting period by another 15 daysto November 16.

* The news came a day after Avoro Capital Advisors, which owns a 7% stake in Acceleron, released a letter to shareholders claiming that Merck's offer undervalues the company.

* "We expect that, by the end of 2022, Acceleron will have results from its Phase 3 STELLAR trial that is enrolling the prevalent PAH population, which we believe will support a higher share price," Avoro wrote in the note.

* While noting that Merck would be a "great partner" for Acceleron, "The problem is not the fit, it is both the timing and the price," the investor said.

* Related Link: Bristol Myers Pledges To Offload Acceleron Shares: Bloomberg.

* Price Action: XLRN shares closed down 0.18% at $173.87, while MRK closed lower by 0.24% at $87.84 on Monday.