Elliott Set To Seek Higher Price For German Drug Distributor

Nov 27 2013 | 9:33am ET

Elliott Management has put itself in position to demand a higher price for German pharmaceutical distributor Celesio from rival McKesson.

The hedge fund has bought up 25.16% of Celesio's voting shares. Even when those shares are diluted by convertible bonds, Elliott's stake will be 21.05%, which should be enough to ensure that McKesson is unable to meet the 75% approval hurdle it needs for its US$8.3 billion takeover.

McKesson is offering €23 per share for the 49.99% of Celesio not owned by Franz Haniel & Cie; the stock closed at €23.47 yesterday. Elliott has until Thursday to disclose its intentions to Celesio, which then has until Tuesday to publish the hedge fund's statement. Elliott is expected to push McKesson to at least €2 or €3 more per share than its current offer.

Should McKesson refuse, it could let its offer lapse and simply buy Haniel's majority stake, which would trigger a mandatory offer at the stock's average price over the past three months, which would be below €23.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of