Spurned MEI Pharma private suitors call rejection 'derogation of fiduciary duties'

Two private equity firms whose unsolicited bid for MEI Pharma (NASDAQ:MEIP) was rejected by the company's board called the rejection a "complete derogation of its fiduciary duties."

Anson Funds and Cable Car Capital said that the board made its decision without any conversations with them.

"It is simply inaccurate for the Board to state that our Acquisition Proposal does not provide a basis for discussions," the group wrote. "We reiterate our willingness to meet with the Board to discuss our Acquisition Proposal in good faith, as we firmly believe that it will result in a far superior outcome for stockholders than the Infinity transaction."

"Should those discussions reveal additional value inherent in the Company, we would also be willing to consider modifications to our Acquisition Proposal to reflect new information," the group, which owns ~14.8% of the common stock of the company, noted.

Anson and Cable Car's offer, made on May 30, is for not less than $8.00 in cash per share as well as a contingent value right to receive 80% of the net proceeds payable from any license or selling of the Company’s clinical assets.

MEI's (MEIP) board turned down the offer earlier Thursday.