In a desperate attempt to acquire Celesio,
) upped its offer to €23.50 per share from €23.00 per share for a
The increase in offer price was expected as it was recently
reported that hedge fund, Elliot Associates, which holds
approximately 25% of shares in Celesio indicated that the offer
price of €23 per share grossly undervalues Celesio's worth.
The offer price of €23.50 is the final offer from
We remind investors that McKesson announced in Oct 2013 that
it has signed an agreement with Franz Haniel & Cie. GmbH, the
largest shareholder in Celesio, to acquire a majority stake in
Celesio for approximately €23 per share or $8.3 billion. Elliot
Associates were reportedly opposing the acquisition
Meanwhile, McKesson also announced that it has increased the
consideration offered for the outstanding convertible bonds of
Celesio to a price which equates to a look-through price of
€23.50 per underlying Celesio share.
McKesson has also reached an agreement with Elliot Associates
to acquire their share of convertible bonds in Celesio.
We note that Celesio provides logistics and services in the
pharmaceutical and healthcare sector with operations in
approximately 14 countries. We are positive on the Celesio
acquisition. The potential acquisition, if it goes through, will
allow McKesson to gain a strong foothold in Europe, thereby
geographically expanding its core operations further.
The acquisition is conditional upon regulatory approvals along
with McKesson obtaining a 75% stake in Celesio.
Shares of McKesson were up 3.25% in regular trading on the
news of increased offer price. We expect investor focus to remain
on further updates on the Celesio acquisition.
McKesson currently carries a Zacks Rank #2 (Buy). Other stocks
that currently look attractive include
Align Technology Inc.
). While Cardinal Health and Align Technology carry a Zacks Rank
#1 (Strong Buy), Herbalife holds a Zacks Rank #2 (Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
HERBALIFE LTD (HLF): Free Stock Analysis
MCKESSON CORP (MCK): Free Stock Analysis
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