Bristol-Myers: key shareholder opposes Celgene deal
(CercleFinance.com) - A top shareholder of US health giant Bristol-Myers Squibb has announced that it is against the group's proposal to acquire US biotech company Celgene.
Investment management firm Wellington said that it recently informed Bristol-Myers' board that it was "not supportive" of the 74 billion dollar deal, which was announced earlier this year.
"The transaction asks Bristol-Myers Squibb shareholders to accept too much risk and the terms offer Bristol-Myers Squibb shares to Celgene shareholders at a price well below implied asset value," the Boston-based asset manager said in a statement.
Under the terms of the agreement, Celgene shareholders will receive one Bristol-Myers Squibb share plus 50 dollars in cash for each Celgene share.
Holding about 8% of Bristol-Myers shares, Wellington said that it is now the company's largest institutional shareholder.
This Thursday Bristol-Myers shares are up 0.4% on this news, while Celgene shares have tumbled almost 7%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Investment management firm Wellington said that it recently informed Bristol-Myers' board that it was "not supportive" of the 74 billion dollar deal, which was announced earlier this year.
"The transaction asks Bristol-Myers Squibb shareholders to accept too much risk and the terms offer Bristol-Myers Squibb shares to Celgene shareholders at a price well below implied asset value," the Boston-based asset manager said in a statement.
Under the terms of the agreement, Celgene shareholders will receive one Bristol-Myers Squibb share plus 50 dollars in cash for each Celgene share.
Holding about 8% of Bristol-Myers shares, Wellington said that it is now the company's largest institutional shareholder.
This Thursday Bristol-Myers shares are up 0.4% on this news, while Celgene shares have tumbled almost 7%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.