ImClone: Mystery Bidder Trumps Bristol-Myers

Shares of ImClone, which have been trading well above Bristol's $60 offer price since the bid was made in late July, were recently up 9.8% at $69.85.

In a statement, ImClone said Chairman Carl Icahn has had "several conversations" with the chief executive of an unnamed pharmaceutical company that has offered $70 a share, not subject to financing. That firm is being given two weeks to study ImClone's books. The biotechnology concern hasn't made a decision on the $70-a-share offer.

Bristol-Myers declined to comment.

In late July, Bristol-Myers made the $4.5 billion proposal to acquire the 83% of ImClone it didn't already own, a bid Icahn in particular said was too low.

ImClone had been studying the potential of breaking up into two businesses, one for Erbitux, the company's sole product, and the other for its pipeline businesses. Erbitux, a drug used to fight head, neck and colon cancers, generated revenue of $1.3 billion in 2007.

ImClone put itself up for sale early in 2006, the year Icahn gained a 14% stake in the firm, when it was valued at about $2.4 billion. It took itself off the market seven months later after it was unable to attract a price it wanted. The company said at the time that its prospects were brightening and that remaining independent had become a better option.

-- David Benoit, Dow Jones Newswires