Labopharm Inc (DDS.TO), a Canadian biotech company specializing in controlled-release drugs, has agreed to be bought by Paladin Labs Inc (PLB.TO), ending a months-long search for a suitor. Paladin said it would pay 28.57 Canadian cents a share in cash for Labopharm, valuing the company at about C$20 million ($20.4 million), a 68 percent premium over its closing share price of 17 Canadian cents on Tuesday. The stock jumped 62 percent at the open in Toronto on Wednesday to 27.5 Canadian cents a share."The board of directors has concluded that this all-cash offer, which is at a significant premium to the trading price of Labopharm's shares, is the best way to maximize shareholder value," Labopharm Chairman Santo J. Costa said in a statement.
Shares of DDS fell by 2.01% or $-0.88/share to $42.92. In the past year, the shares have traded as low as $19.29 and as high as $61.08. On average, 1264400 shares of DDS exchange hands on a given day and today's volume is recorded at 2177557.
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