Elliott Sells Out Of Celesio, Seals Takeover Deal

Jan 27 2014 | 11:38am ET

Elliott Management will ensure the success of a pharmaceutical merger, after all.

The hedge fund, which ended its battle with McKesson Corp. when the company boosted its offer for Celesio by 2%, has agreed to sell its roughly 25% stake in Celesio to Franz Haniel & Cie, which already owns a majority stake in the company. In turn, Haniel has accepted McKesson's offer, which the latter had dropped two weeks ago after it failed to win the necessary 75% backing from shareholders.

In addition, Elliott has agreed to sell its convertible bonds in Celesio to McKesson at an undisclosed price, and to stop interfering with the transaction, Reuters reports. Elliott reportedly made most of its profit on the deal through the sale of the convertible bonds.

The deals will allow McKesson to take control of Celesio through a domination and profit-and-loss transfer agreement, one that will eventually force Celesio's minority shareholders to give up their stock.

"We are excited to move forward with our acquisition of Celesio," McKesson CEO John Hammergren said.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...