Celgene stock falls 8% after top Bristol-Myers Squibb holder opposes deal

on Feb28
by | Comments Off on Celgene stock falls 8% after top Bristol-Myers Squibb holder opposes deal |


Shares of Celgene Corp.

CELG, +1.43%

fell more than 8% in the extended session Wednesday after the top Bristol-Myers Squibb Co.

BMY, +1.59%

institutional investor spoke up against the company’s proposed $74 billion deal to buy Celgene. Wellington Management Co., which owns an 8.3% stake in Bristol-Myers, according to FactSet, said in a press release late Wednesday it told Bristol-Myers’s board it does not believe that “the Celgene transaction is an attractive path towards accomplishing” the goal of securing differentiated science and broadening its future revenue base. The deal asks Bristol-Myers shareholders “to accept too much risk,” its execution success could be more difficult than what management has depicted, and there are “alternative paths” to create value that could be more attractive, Wellington Management said. In an emailed statement confirming that executives had met with Wellington, Bristol-Myers wrote, “We believe that we are acquiring Celgene at an attractive price, and that this transaction presents an important and unique opportunity to create sustainable value.” Shares of Bristol-Myers rose 2.5% in the extended session. Bristol-Myers announced the deal in January.

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