Nelson Stock Up After Takeover Bid
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The price of Nelson Research & Development Co.’s common stock climbed nearly 33% to $4.375 a share in light trading Monday, the first trading day after the Irvine drug developer revealed that it had received a $45-million takeover offer.
“I guess when there’s a takeover bid, this is the normal reaction,” said Joseph G. Rose, the company’s controller. He would not comment further about the $5-a-share bid the company received from Ethyl Corp., a Richmond, Va., chemical and petroleum products maker. Nelson’s board of directors is scheduled to discuss the ethyl offer on Thursday.
Nelson released the takeover news a few minutes after the markets closed Friday--with Nelson at $3.25 a share.
Ethyl said Friday that it had purchased 1.27 million shares, about 13.8% of Nelson’s common stock, from the company’s founder, Eric L. Nelson, who left the helm of the 13-year-old company early this year. Ethyl paid $5 per share for that stock.
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