Monday, 20 October 2014
Last updated 2 hours ago
Dec 10 2013 | 1:24pm ET
Elliott Management today made good on its threat to try to sink the merger of two pharmaceutical distributors.
The activist hedge fund warned that it would not tender its shares in Celesio unless its would-be buyer, McKesson, "offers fair compensation to all Celesio shareholders and bondholders." McKesson's US$8.3 billion deal requires the tendering of 75% of Celesio shares; Elliott currently owns 25.16%.
Even after that stake is diluted by bond conversions, Elliott will still hold a 22.7% voting stake, which should be enough to block the deal.
McKesson can back out of a deal to buy a majority stake in Celesio from Franz Haniel & Cie if 75% of shares are not tendered. But Elliott does not seem concerned that the deal will die.
"We believe Celesio has other paths to maximize shareholder and bondholder value," Elliott said, suggesting that the company could be split: "Sell the wholesale business to a strategic bidder and the pharmacy business to a separate buyer."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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