Friday, 26 December 2014
Last updated 1 day ago
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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.