Ramius Sweetens Offer for Cypress Bio

8/11/10Follow @bvbigelow

New York’s Ramius, which made last month’s unsolicited offer to acquire San Diego’s Cypress Bioscience (NASDAQ: CYPD) for $160 million, pushed again today to meet with the biotech, and even sweetened its offer slightly. A statement issued by Ramius Value & Opportunity Advisors includes a letter to Cypress saying, “We…are extremely disappointed that the company has not taken us up on our recent offer to engage in meaningful negotiations.” Cypress rejected the Ramius offer last week and announced that it is withdrawing from its commercial business, selling its rights to its fibromyalgia drug, and laying off 86 percent of its workforce. In its letter today, Ramius reiterated its $4 a share offer, adding another 39 cents per share to acquire a half stake in BL-1020, an anti-psychotic drug Cypress acquired earlier this year. That increased the overall offer by almost $15 million.

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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