Wednesday, 27 August 2014
Last updated 1 hour 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...