Japanese drugmaker Astellas Pharma Inc.'s painstaking pursuit of OSI Pharmaceuticals LLC is officially over. On May 17, 2010 came news that the two companies had agreed to a definitive merger agreement, enjoying the unanimous support of both companies' boards. The victory came at a price, however, costing $4 billion, about $500 million more than Astellas' original hostile bid, launched in late February. [See Deal] As of June 8, more than 53 million shares—approximately 93% of OSI's issued and outstanding shares--had been validly tendered, allowing Astellas to proceed with the acquisition via Delaware's short-form merger process, which doesn't require approval from OSI shareholders.
That Astellas and OSI managed to find a path forward isn't surprising. Both companies had too much at stake not...