Bristol-Myers Squibb: defends Celgene acquisition
(CercleFinance.com) - Bristol-Myers Squibb's offer to buy biotechnology company Celgene has "clear strategic rationale" and represents a "compelling value proposition", the drugmaker said on Wednesday, after receiving several objections from major shareholders.
In a letter to shareholders, Bristol-Myers Squibb said that it has a "strong" track record of financial and operational outperformance, and that it has conducted "robust" diligence ahead of the deal.
Last week, two top shareholders of the US health giant said that they opposed the 74 billion dollar deal, which was announced earlier this year.
Activist investor Starboard noted that Celgene's pipeline is "extremely risky", and highlighted other options for Bristol-Myers, either as a more profitable standalone company with a more focused, lower-risk strategy, or in a potential sale of the whole group.
Investment management firm Wellington agreed with this, saying that the transaction asked Bristol-Myers Squibb shareholders to bear "too much risk."
Copyright (c) 2019 CercleFinance.com. All rights reserved.
In a letter to shareholders, Bristol-Myers Squibb said that it has a "strong" track record of financial and operational outperformance, and that it has conducted "robust" diligence ahead of the deal.
Last week, two top shareholders of the US health giant said that they opposed the 74 billion dollar deal, which was announced earlier this year.
Activist investor Starboard noted that Celgene's pipeline is "extremely risky", and highlighted other options for Bristol-Myers, either as a more profitable standalone company with a more focused, lower-risk strategy, or in a potential sale of the whole group.
Investment management firm Wellington agreed with this, saying that the transaction asked Bristol-Myers Squibb shareholders to bear "too much risk."
Copyright (c) 2019 CercleFinance.com. All rights reserved.