Ramius Still Wants Cypress Bio

Bruce V. Bigelow8/25/10

It took a week, but Ramius Value and Opportunity Advisors responded today to what it calls the “abrupt resignation” of independent director Jean-Pierre Millon from the board at San Diego’s Cypress Bioscience (NASDAQ: CYPB). The subsidiary of New York’s multi-billion-dollar Ramius group says it’s still committed to its $160-million buyout offer for Cypress, says it’s willing to negotiate, and asks the newly appointed lead independent director, Daniel Petree, for a meeting with any or all of San Diego biotech’s independent directors. In a letter to Petree, Ramius Partner Managing Director Jeffrey C. Smith says that Millon’s resignation “at best…demonstrates an unhealthy board environment,” and “at worst, it is symptomatic of a truly dysfunctional board that continues to act without regard to the best interests of shareholders.” Cypress has steadfastly rejected Ramius’ overtures.

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