Celgene shares plunged Wednesday night Bristol-Myers SquibbThe main shareholder of (BMY) said that he opposed the $ 74 billion merger of the two giants of biopharmacy.
Wellington Management Company, which owns 8% of Bristol's stock, agrees that the drug giant should look for mergers and partnerships that will expand its future revenues. However, the Celgene (CELG) the acquisition will not achieve this goal, said the investment management company.
"The transaction requires Bristol shareholders to accept too many risks and the terms offer Celgene shareholders Bristol shares at a price well below the implied value of the assets," Wellington said in a statement. written declaration.
In addition, any success will be "more difficult to achieve than described by the management of the company". The investment company urged Bristol to look for other ways to create value for the Bristol stock.
After trading hours on the current stock market, Celgene shares fell 5.8% to nearly 85.50. The Bristol stock, however, rose by a fraction, nearly 51.20. Bristol's shares fell nearly 14% on Jan. 3, the day of the announcement of the massive merger of the biopharmaceutical. Since then, equities have increased by 13%.
The agreement was concluded in the midst of a series of other mergers in the biotechnology sector, including Eli Lilly$ 8 billion acquisition plan (LLY) Loxo Oncology (LOXO), and this week's announcement that rock (RHHBY) will buy Therapeutic Spark (ONCE) for 4.8 billion dollars. GlaxoSmithKline (GSK) recently took Tesaro for $ 5.1 billion.
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