08/12/2008 05:12 am ET Updated May 25, 2011

Icahn, ImClone Turn Down Bristol-Myers Offer

ImClone Systems, the maker of the anti-cancer drug Erbitux, said on Monday that while it is studying a $4.5 billion takeover bid from Bristol-Myers Squibb, it believes the offer is too low.

Last Thursday, Bristol-Myers offered to pay $60 a share in cash for the 83 percent of ImClone that it does not already own. But ImClone said in a statement that its board has been considering a plan to split the company into its two components: the manufacturing of Erbitux and its pipeline business. Such a plan, ImClone said, may provide increased shareholder value on its own.

Carl C. Icahn, the activist investor who is ImClone's chairman and a large shareholder, said he is opposed to Bristol-Myers's offer. The company said in a statement that other large investors also consider the bid too low.

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Read about Carl Icahn's success investing in ImClone (where Martha Stewart and others failed)