Bluebird bio shares fall amid acquisition woes

Investing.com -- Shares of Bluebird bio Inc (NASDAQ:BLUE) tumbled 8% in premarket trading today following the company’s confirmation that Ayrmid, Ltd. has not delivered a binding offer or secured the necessary financing for a potential acquisition. The biotechnology firm’s board has reiterated its recommendation for shareholders to support the existing transaction with Carlyle and SK Capital.

On April 16, 2025, Bluebird bio announced that despite extending the timeline for Ayrmid to complete due diligence and submit a binding offer, Ayrmid failed to meet these conditions. Mark Vachon, chairman of Bluebird’s board, expressed the board’s unanimous support for the current agreement with Carlyle and SK Capital, emphasizing the company’s risk of defaulting on its loan covenants without a significant capital infusion.

Bluebird bio had previously entered into a definitive agreement with Carlyle and SK Capital on February 21, 2025, to be acquired for $3.00 per share in cash, along with a contingent value right of $6.84 per share upon reaching a sales milestone. The board approved this deal after considering strategic alternatives and following the FDA’s third denial of a priority review voucher for the company.

Following the announcement of the tender offer with Carlyle and SK Capital, Bluebird received an unsolicited proposal from Ayrmid for $4.50 per share upfront and the same contingent value right. However, the proposal was non-binding and subject to several conditions. Ayrmid’s inability to present a binding offer or confirm financing has led the Bluebird board to reinforce its stance on the Carlyle and SK Capital agreement as the only viable option for shareholder value.

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The market’s response reflects concerns over Bluebird’s financial stability and the potential collapse of a more lucrative acquisition deal. The board’s decision to uphold the agreement with Carlyle and SK Capital suggests a strategic move to secure the company’s future and avoid loan default risks, despite the higher offer from Ayrmid. Investors are advised to tender their shares into the current agreement by May 2, 2025, as per the board’s recommendation.

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