Endo Pharmaceuticals announced to acquire Indevus Pharmaceuticals (NASDAQ: IDEV) for $4.50 cash for each share of Indevus Pharmaceuticals (NASDAQ: IDEV). According to a recent press release an investigation on behalf of Indevus Pharmaceuticals (NASDAQ: IDEV) investors over possible shareholder claims arising from potential breaches of fiduciary duty and other violations of state law by the board of directors of Indevus Pharmaceuticals arising out of their attempt to sell the company to Endo Pharmaceuticals was announced. What do the investors think: Is the offered price fair?

According to the press release by a law firm the investigation focused on potential breaches of fiduciary duty and other violations of state law by the board of directors of Indevus Pharmaceuticals arising out of their attempt to sell to Endo Pharmaceuticals. Indevus Pharmaceuticals, Inc. (NASDAQ: Indevus) is a specialty pharmaceutical company engaged in the acquisition, development and commercialization of products to treat conditions in urology and endocrinology. Under the terms of the agreement, shareholders of Indevus Pharmaceuticals (NASDAQ: IDEV) will receive $4.50 cash for each share of Indevus Pharmaceuticals (NASDAQ: IDEV) they own. Indevus Pharmaceuticals (NASDAQ: IDEV) shareholders may also receive up to and additional $3.00 per share if certain regulatory and sales milestones are met over the next five years. According to the investigation the proposed transaction is unfair, given that, among other things, Indevus Pharmaceuticals (NASDAQ: IDEV) shares traded above $6.50 during 2008 and its recent stock price likely reflects recent turmoil in the financial markets. Indevus traded in 2007 for over $7.8. Also, so the investigation, the sales process Indevus Pharmaceuticals (NASDAQ: IDEV) conducted was flawed given that, in contravention of their fiduciary duties to maximize shareholder value, the Board of Directors of Indevus Pharmaceuticals (NASDAQ: IDEV) agreed to a 'no-solicitation' provision and a $20 million termination fee which will ensure no superior offer will ever be forthcoming. The proposed acquisition is subject to customary conditions and regulatory approvals. In addition, so the investigation, shareholders have a right to sufficient information relating to the projections vis a vis the two drugs in development.