Abraxis Bioscience, Inc. investors file lawsuit against Celgene takeover

“ Lawsuit on behalf of current investors in Abraxis Bioscience, Inc. (NASDAQ:ABII) stock alleging breaches of fiduciary duty – ABII investors should contact the Shareholders Foundation, Inc ”

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(eFinanceWire.Org) – Within 24 hours after Celgene announced its offer to buy Abraxis Bioscience, Inc for $2.9billion an investor filed a lawsuit in the California Court on behalf of current investors Abraxis Bioscience, Inc. (NASDAQ:ABII) alleging breaches of fiduciary duty by certain members of the Abraxis Bioscience board of directors for selling Abraxis Bioscience too cheaply to Celgene Corp.

If you currently hold shares of Abraxis Bioscience, Inc. (NASDAQ:ABII), you have certain options and you should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.

Abraxis BioScience, Inc., located in Los Angeles, California, is an integrated biotechnology company. The Company is engaged in the discovery, development and delivery of next-generation therapeutics and technologies that offer patients treatments for cancer and other critical illnesses.

On Wednesday, June 30, 2010, Abraxis BioScience Inc. (Nasdaq: ABII) and Celgene Corporation (NASDAQ: CELG) announced the signing of a merger agreement in which Celgene Corp. has agreed to acquire Abraxis BioScience. Under the terms of the merger agreement, each share of Abraxis BioScience common stock will be converted into the right to receive an upfront payment of $58.00 in cash and 0.2617 shares of Celgene common stock. The upfront payment values Abraxis BioScience at approximately $2.9 billion, net of cash. Each share will also receive one tradeable Contingent Value Right (CVR), which entitles its holder to receive payments for future regulatory milestones and commercial royalties The transaction has been approved by the Board of Directors of Abraxis BioScience.

Shares of Abraxis Bioscience, Inc. (ABII) climbed from $63.13 per share on Monday to at $74.68 per share after the announcement.

According to the complaint the plaintiff claims that Abraxis is worth more than $3.5 billion, based on the potential of its breast cancer drug Abraxane and prospects for its pipeline. The plaintiff alleges that the offer undervalues Abraxis and "essentially pay(s) nothing for Abraxis' pipeline drugs." The shareholder alleges that Abraxis CEO Patrick Soon-Shiong, who owns 82.8 percent of Abraxis' shares, wants to "cash out all his illiquid holdings and secure a billion-dollar payday."

Those who currently hold shares of Abraxis Bioscience, Inc. (Public, NASDAQ:ABII), have certain options and should contact the Shareholders Foundation, Inc by email at mail@shareholdersfoundation.com or call +1 (858) 779 – 1554.