Celesio shareholder remains opposed to bid

Source:Reuters-Global Times Published: 2013-12-23 23:33:01

Hedge fund Elliott International remains opposed to US wholesale drugs group McKesson's $8.3 billion offer for European counterpart Celesio, it said Monday, warning it was "irrevocably bound" not to accept the bid in its current form.

McKesson, the largest US drugs wholesale group, agreed to buy Celesio in October for 23 euros ($31.47) per share in cash, seeking to expand abroad and boost its purchasing power with pharma majors.

Elliott, run by US investor Paul E. Singer, has spent about 800 million euros on building a stake of more than 20 percent in Celesio and earlier this month said it would not tender its shares in Celesio, urging McKesson to sweeten its offer.

"Elliott has seen reports suggesting that it will change its mind and accept McKesson's offer. These reports are categorically incorrect," Elliott said in a statement on Monday.

"To be absolutely clear, Elliott's final binding decision is not to accept McKesson's offer on its current terms."

Celesio declined to comment. A Germany-based spokesman for San Francisco-based McKesson also declined to comment.

The largest German healthcare deal since drug maker Bayer bought rival Schering in 2006 will give McKesson about 22 billion euros in annual revenues from Celesio, creating an over-$150 billion global drugs wholesaler and pharmacies group.

Shareholders of Celesio can tender their shares until January 9, 2014.

McKesson and its closest US rivals, AmerisourceBergen and Cardinal Health, have all been looking to grow outside their domestic market, where they command a combined 95 percent share.



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