Wednesday, 1 April 2015
Last updated 8 hours ago
Jan 15 2014 | 11:32am ET
Elliott Management's attack on McKesson Corp.'s proposed acquisition of rival pharmaceutical distributor Celesio appears to have worked too well.
The New York-based hedge fund spent more than a month attacking the US$8.3 billion deal as one that "substantially" undervalued Celesio—before McKesson increased its offer by 2% on the tender offer's last day, coaxing Elliott into accepting. But Elliott may have been the only investor assuaged by the move.
Despite the backing of Franz Haniel & Cie, which owns 50.01% of Celesio, and of Elliott, which owns 22.7%, the deal failed to win the required 75% support from shareholders—even after McKesson gave investors an extra few days to respond.
McKesson said it may consider creating a joint-venture with Celesio following the failure. But Elliott is not likely to be too upset about the deal's failure, despite its last-minute support for the sweetened offer and the drop in Celesio's share price. The hedge fund expressed confidence last month that Celesio "has other paths to maximize shareholder and bondholder value," suggesting that the company's wholesale and pharmacy business be marketed to separate buyers.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…