Cypress Pursuing Alternative Buyout Deal

Xconomy San Diego — 

Shares of San Diego’s Cypress Bioscience gained more than 20 percent in furious trading of nearly 4.8 million shares on Nasdaq—more than eight times the company’s recent average volume—after rejecting a new cash offer from the New York-based Ramius group of funds. In a statement today, Ramius and affiliates of Royalty Pharma Finance Trust said they had negotiated the terms of a definitive merger agreement with Cypress over the past few days at $6 a share—or about $232 million, according to Bloomberg. In its statement, Ramius said it learned Monday night that the Cypress board “had rejected its offer and that the company is pursuing an alternative transaction with a third party.”