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Affymetrix Sued over Pending eBioscience Deal; Firm Pushes Back Acquisition Date

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Affymetrix is facing a lawsuit related to its imminent purchase of eBioscience. The firm has also pushed back the anticipated completion period for the deal, but said that the delay is not related to the new suit.

Tang Capital Partners, a San Diego-based investment fund, on Dec. 29, 2011, filed class action litigation in the Superior Court of California in the County of Santa Clara, Affy said last week in a filing with the US Securities and Exchange Commission.

The court does not make civil case documents available online.

Tang Capital Partners holds one of Affy's 3.5 percent senior convertible notes due 2038. The investment fund's complaint "alleges a variety of claims," including that the acquisition would constitute a "fundamental change" under the indenture governing the notes, according to the filing.

Tang Capital Partners is seeking "unspecified damages, temporary and permanent injunctive relief against completion of the eBioscience acquisition, and other remedies," Affy said.

The company said that the suit is "without merit" and that it will close its acquisition of eBioscience this month.

Affy in November announced its intent to buy eBioscience for $330 million in cash and debt (BAN 12/06/2011). The firm originally hoped to close the planned acquisition by the end of 2011. Last week, prior to the announcement of the new suit, the company pushed the anticipated completion date to January 2012. In another SEC filing, it attributed the delay to "additional work required to complete the debt financing for the merger."


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