The private equity firm behind a £1.2bn bid for Clinigen is under pressure to raise its offer, with Elliott Management understood to be among several hedge funds believing that it undervalues the drugs provider.

Triton Investment Management’s 883p-a-share cash offer for Clinigen was recommended by the British company’s board last month. The proposal is at a 41 per cent premium to Clinigen’s ex-dividend share price at the start of the month, before the offer period began.

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However, shares in Clinigen, one of the larger companies on Aim, London’s junior stock market, stand at 916p, suggesting that some investors expect an improved offer.

Investors including Elliott, the American hedge fund that is Clinigen’s largest shareholder, and Sparta Capital, another activist.

Source: The Times

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