Activist investor Starboard Value said Thursday that it intends to use its stake in Bristol-Myers Squibb to oppose the drug-maker's acquisition of Celgene.
"Bristol-Myers is deeply undervalued and the recent announcement of the Company's proposed acquisition of Celgene Corporation is poorly conceived and ill-advised," Starboard CEO Jeffrey Smith wrote in a letter to Bristol-Myers shareholders. The activist fund has also nominated a slate of director candidates that it hopes to elect at Bristol's 2019 annual shareholder meeting.
Bristol-Myers stock rallied more than 1 percent and Celgene sank 7.4 percent following the release of Starboard's letter.
The latest activist activity comes after Bristol-Myers announced in January a deal to buy Celgene valued at $74 billion. Investment firm Wellington Management also announced its opposition to the Bristol-Myers acquisition in a release on Wednesday.
Wellington said that it "does not believe that the Celgene transaction is an attractive path towards" business that "secures differentiated science and broadens the future revenue base."
This story is developing. Please check back for updates.
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