Bristol-Myers Squibb reiterated its commitment to the $74 billion acquisition of Celgene Corp, framing the deal as a strategic necessity despite mounting shareholder resistance. The pharmaceutical giant highlighted a six-month due diligence process conducted by advisers, emphasizing its assessment of risks and opportunities associated with the merger.
Two prominent investors, Starboard Value LP and Wellington Management, have raised concerns about the transaction. Starboard, known for its activist approach, called the deal "ill-advised" and urged shareholders to reject it at a scheduled April 12 meeting. The firm also nominated five board candidates, including its CEO Jeffrey Smith.
Wellington, which holds an 8% stake in Bristol-Myers, argued the acquisition posed excessive financial risk. Credit Suisse analyst Vamil Divan noted the company's shareholder letter aimed to counter these concerns while projecting over 40% earnings growth in the first year post-merger. The Loncar Cancer Immunotherapy ETF joined the opposition, citing Celgene's management of past acquisitions as a red flag.
A 2018 photo of Bristol-Myers executives underscores the deal's prolonged timeline. Bristol-Myers shares fell 1.34% to $53.01, while Celgene declined 0.4% to $85.91 amid the uncertainty.
