McKesson (MCK) Slumps as $8.4B Celesio Meets Resistance
Tweet
Share
E-mail
Get Alerts MCK Hot Sheet
Join SI Premium – FREE
McKesson (NYSE: MCK) shares are lower Tuesday as its €6.1 billion (about $8.38 billion) bid for Celesio is under attack.
The WSJ said Celesio's largest independent investor -- Elliott Management -- rejected the offer, saying it undervalued the company. Elliott said that it
McKesson bid €23 per share for Celesio last October. Elliott thinks that synergies between the two companies holds more value than what McKesson put on Celesio. The hedge fund notes that splitting Celesio's retail and wholesale operations could unlock some of that value.
The dissension could put a halt on the deal; Elliott was said to hold 25 percent of Celesio when taking into consideration two convertible bonds and the deal needs 75 percent approval to pass. The Hamiel family has a 50.01 percent stake in the company.
McKesson is down about 2.1 percent with heavy volume.
The WSJ said Celesio's largest independent investor -- Elliott Management -- rejected the offer, saying it undervalued the company. Elliott said that it
Elliott believes that McKesson's offer for Celesio substantially undervalues the company and is not in the best interests of shareholders and bondholders.
McKesson bid €23 per share for Celesio last October. Elliott thinks that synergies between the two companies holds more value than what McKesson put on Celesio. The hedge fund notes that splitting Celesio's retail and wholesale operations could unlock some of that value.
The dissension could put a halt on the deal; Elliott was said to hold 25 percent of Celesio when taking into consideration two convertible bonds and the deal needs 75 percent approval to pass. The Hamiel family has a 50.01 percent stake in the company.
McKesson is down about 2.1 percent with heavy volume.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Stripe, Advent In Talks To Buy Paypal - WSJ
- McKesson (MCK) PT Raised to $1,015 at Baird
- Evercore reports July prescription volumes up 1.9% year-over-year
Create E-mail Alert Related Categories
Hedge Funds, Insiders' Blog, Mergers and AcquisitionsRelated Entities
Hedge FundsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
