BMS takeover target?

Good posts. However, who would want to pay the 2.2 billion breakup fee to Celegene. I do not think this will happen.

 

I don’t think the BMS-Celebes is a done deal. A lot of shareholders express wariness about it. Also, house representatives are asking to examine the deal.

https://news.bloomberglaw.com/health-law-and-business/lawmakers-want-ftc-doj-to-examine-celgene-bristol-myers-deal-1?utm_source=rss&utm_medium=HLNW&utm_campaign=00000168-4dc9-d2ef-a168-7dcb95790000

 

the Celgene deal was obviously a desperation move by a ceo and board that are fearful of losing their jobs in a takeover. BMS bought Celgene to block Pfizer or someone else from buying them. Sad fact is, all of these pharma CEOs/boards have fallen into the trap of managing a stock rather than a company.

 

BMS is still a target since the deal is not finalized ! But given that it is lagging in IO (the reason it wants to diversify by buying celgene) not sure it is as attractive a target as it was in last 2 years !
Who would want to spend > 100 billion dollars for something that wont give the results it once promised ? Also, by celgene acquistion BMS admits that the pipeline is not diversified and strong. Dont see why someone would spend so much money for Opdivo/Yero

 

You literally said the SAME exact thing that I said 5 posts up...

 

For a while, rumors were hinting that Pfizer might have a merger deal with BMS, however that all went out the window after Opdivo and Yervoy didn't live up to its hype and expectations.

 

Lol ! Just read a post that says same thing .. I did not bother to read the thread just blurted put my mind - if people like us can see it then definitely there is no way this has missed the ‘executives’

 

Let's face it. We have failed to discover, produce, or commercialize innovative products. Thankfully, we still have money from our glory years to buy up an innovative company that is going through a tough patch. We will absorb them, destroy their culture and be back in the same spot in 5 years. What we are doing is nothing different that what Pfizer has done for years. We just aren't as big or powerful as Pfizer, but we are every bit as stale and evil as them.

Like everyone I know, we are just hanging on until we can retire. This place sucks.

 

So true!

 

"Thankfully, we still have money from our glory years to buy up an innovative company that is going through a tough patch." Wrong. Most of the monies borrowed thru bridge loan, on top of some hard core stock printing job.

 

"
Celgene (CELG +0.4%) is currently exchanging hands at ~$86.50, 15.6% below its takeout valuation when Bristol-Myers Squibb (BMY +0.3%) announced its $74B bid on January 3 ($102.43/share). The spread is 15.4% based on current trade.

Typically, a disconnect this large signals that investors have doubts that the transaction will be consummated."

Source: Seekingalpha.com (January 24, 2018)

 

Apparently, John Paulson the billionaire sees a 10 percent to 20 percent chance that BMS receives a takeover bid and he’s positioning his Celgene Corp. trade based on that risk, he said in an interview on Mike Samuels’ “According to Sources” podcast.

This Celgene deal may be far from fruition.

 

Pay attention to Amgen’s earnings tomorrow. That’s really the only feasible buyer of BMS.

 

And pay a 2 billion dollar penalty! That makes great business sense!

 

When you’re talking in the hundreds of billions for a bid for BMS a 2% penalty isn’t really that big of a deal...

Ideally no company would want to do that but it’s pretty insignificant in the long run for one of the big boys.

 

Stock market is all about risks.

 

In the event the BMS-Celgene deal will not proceed as planned , a precedent occured in the past between Pfizer and Allergan.

According to data from S&P Global Market Intelligence, the Celgene deal is a little more than a billion dollars shy of the $3.5 billion termination fee set for Pfizer Inc.'s failed bid to take over Allergan PLC in 2015, a deal valued at more than $190.8 billion. After the U.S. federal government blocked the deal, both parties mutually agreed to terminate. Pfizer ended up paying just $150 million in fees to Allergan once the terms were settled.

 

That was because the US govt blocked it, not shareholders !

 

The deal is going through and that's that. You can't milk a cat that ain't there!

Stop with the rumors. BMS will get to live on another 6 years until our next desperate move - just long enough for Giovanni to happily retire.

 

I don’t think OP’s spreading rumors. It’s those analysts publishing articles.