1-CPEX says hostile bid by investor inadequate

CPEX Pharmaceuticals Inc (CPEX.O) said the hostile bid by one its investors to take the firm private for $16 a share is inadequate and substantially undervalues the company, and urged its shareholders to reject the offer.

The company also said it plans to explore strategic alternatives including, a sale, merger or other business combination of CPEX with a third party or a monetization of the assets.

The board expects to make a public announcement regarding the strategic alternatives during the third quarter, and is being advised by RBC Capital Markets.

Last month, one of its largest shareholders, Richard Rofe, launched a hostile cash bid for the specialty pharmaceutical company, valuing the company at around $40.7 million, considering 2.54 million shares outstanding as of March 24. [ID:nSGE63M0GR]

Shares of the company were up 4 percent to $24 in premarket trade. They closed at $23.18 Wednesday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Ratul Ray Chaudhuri)

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* Plans to explore strategic options including sale of co

* Shares up 4 pct in premarket trade

May 6 (Reuters)