Bluebird Bio shares rally 11% in late trade on buyout offer

Shares in gene therapy co Bluebird Bio BLUE.O up 11% at $4.54 in after-the-bell trading after it confirmed receipt of unsolicited buyout offer from Ayrmid Ltd for $4.50/share cash upfront, one-time contingent value right of $6.84/shr payable if it reaches a net sales milestone

BLUE shares had ended Friday's regular trading up 7.7% at $4.08 after spiking to $4.43 session high in a volume jump minutes before the close

It fell 42% on Feb 21 after it accepted a discounted deal with PE firms Carlyle and SK Capital Partners. Under the agreed deal BLUE would be taken private for $3.00/shr cash, one-time contingent value right of $6.84/shr payable on hitting a net sales milestone

BLUE, which had closed at $7.04 on Feb 20, forged the private equity deal after a prolonged struggle to survive a cash crunch in a difficult market environment

BLUE says previously talked with privately-held UK company Ayrmid as part of a review of strategic alternatives but Ayrmid had not submitted any proposal as part of that process

BLUE says reviewing the Ayrmid proposal but remains subject to the terms of the Carlyle/ SK deal and its Board has not changed its recommendation in support of the Merger

At its peak BLUE had traded above $3,000 in March 2018.