Synta Pharmaceuticals Corp (SNTA): Billionaire Bruce Kovner Buys More Shares

Published on April 17, 2016 at 6:45 pm by Insider Monkey Staff in Hedge Funds,News

Page 1 of 12

Can you buy $1 for 80 cents? Stock markets rarely provide the opportunity to invest in an asset that’s worth than the net cash it carries on its books. Today, we came across a stock that trades for $0.80 for each $1 cash it holds on its books. Usually these opportunities are available when the market thinks the current management won’t take any actions that will enhance (or not destroy) shareholder returns. Last week Synta Pharmaceuticals Corp (NASDAQ:SNTA) and Madrigal announced their merger agreement. Madrigal will essentially take over the merged company, owning 64% of the outstanding shares of the entity.

Is this merger a good transaction for Synta Pharmaceuticals Corp shareholders? Billionaire Bruce Kovner thinks so. He filed an amended 13D last week disclosing additional purchases of 60K or so SNTA shares as well as his support for the merger. On the other hand, Synta’s President and CEO Dr. Paul Friedman decided to put his money on Madrigal as part of a $9 million cash infusion together with a consortium of investors. This tells me that Magrigal investors are getting the better part of this merger agreement.

Is it a good idea to follow Kovner into Synta? The merged entity which will be named Madrigal is currently valued at nearly $150 million. This seems a bit too high for a company that has only two drug candidates that are in early stages of clinical trials. There are other biotech stocks that have drug candidates at more advanced stages and trade at lower valuations.

In any case, you can find the details of Kovner’s recent filing below:

Ownership Summary Table

Name	Sole Voting Power	Shared Voting Power	Sole Dispositive Power	Shared Dispositive Power	Aggregate Amount Owned Power	Percent of Class
Caxton Corporation	0	12,057,869	0	12,057,869	12,057,869	8.7%
Kovner	0	340,970	0	340,970	340,970	0.2%
Kovner	0	4,000,000	0	4,000,000	4,000,000	2.9%
OB Select Opportunities	0	600,548	0	600,548	600,548	0.4%
KFO HOLDINGS	0	11,399,464	0	11,399,464	11,399,464	8.3%
Kovner, Bruce	5,443,823	16,398,839	5,443,823	16,398,839	21,842,662	15.8%

Page 1 of 12 – SEC Filing

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 21)

Synta Pharmaceuticals Corp.

(Name of Issuer)

Common Stock

(Title of Class of Securities)

87162T206

(CUSIP Number)

Mr. Heath N. Weisberg

Caxton Corporation

731 Alexander Road, Bldg. 2

Princeton, New Jersey 08540

(212) 205-6805

(Name, Address and Telephone Number of Person Authorized to

Receive Notices and Communications)

April 13, 2016

(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Section 240.13d-1(e), 240.13d-1(f) or

240.13d-1(g), check the following box. | |

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Section

240.13d-7 for other parties to whom copies are to be sent.

*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

Follow Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL)Follow Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL)

Page 1 of 12

Next >>