Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Markets & Finance

Bear Stearns Likes DuPont-Bristol Myers Drug Deal


Bear Stearns says DuPont's (DD) deal to sell its drug unit to Bristol-Myers Squibb is positive.

Analyst Jeffrey Peck says the price is higher than expected. Using $2 billion in book value, he estimates DuPont will net $5.8 billion in cash after tax; he sees the deal accretive to DuPont's 2002 EPS by about $0.10. Peck notes the sale represents 16% of DuPont's entire market capitalization. Given previous expectations of valuation at about 10% of market capitalization, Peck thinks the sale could move DuPont's stock 5% in the very short term. He notes the company's ownership of half of Cozaar (Merck has the other half ) is not part of this deal. While previous deals (i.e.: sale of Conoco, purchase of Pioneer) have come under criticism, management can hang their hats on a upbeat deal. He reiterates his buy rating.


The Aging of Abercrombie & Fitch
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus