Starboard Details Opposition to Bristol-Myers Deal for Celgene
01 March 2019 - 2:45AM
Dow Jones News
By Micah Maidenberg
Activist investor Starboard Value LP detailed its opposition to
Bristol-Myers Squibb Co.'s proposed acquisition of Celgene Corp. on
Thursday, describing the proposed takeover as poorly conceived and
ill advised.
The Wall Street Journal first reported last week that Starboard
and fifth-largest shareholder Dodge & Cox were unhappy with the
deal. Bristol-Myers agreed to buy rival Celgene earlier this year
in a deal valued at about $74 billion.
Starboard, which has proposed a slate to join the board of
Bristol-Myers, said Thursday that the drugmaker's management and
board have delivered years of weak performance and haven't "earned
the right, in our view, to execute on a 'bet the company'
acquisition."
"We believe the risks inherent in this acquisition paired with
the long-term poor results at Bristol-Myers make it untenable to
support such a transaction," the investor said in a Feb. 28 letter
to Bristol-Myers shareholders.
A spokeswoman for Bristol-Myers didn't immediately have a
comment.
Shares of Bristol-Myers rose 1.5% in Thursday morning trading,
while Celgene shares dropped 8.7%.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
February 28, 2019 10:30 ET (15:30 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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