Bloomberg the Company & Products

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

Communications

Industry Products

Media Services

Follow Us

McKesson, Elliott Said in Talks on Celesio Stalemate

Don't Miss Out —
Follow us on:

Jan. 8 (Bloomberg) -- McKesson Corp. and hedge fund Elliott Management Corp. are discussing options including a possible increase in McKesson’s offer for drug distributor Celesio AG to overcome Elliott’s opposition to the deal, three people familiar with the matter said.

No final decision has been made and the talks may not lead to an agreement on the 3.9 billion-euro ($5.3 billion) offer, though, said the people, who asked not to be identified because the process is confidential. Celesio shares rose the most in almost four years.

McKesson, based in San Francisco, said Oct. 24 it agreed to buy the 50.01 percent stake in Celesio held by Franz Haniel & Cie GmbH, a family-owned investment company, for 23 euros a share, and begin a tender offer for the remaining publicly traded shares at the same price. McKesson’s offer is conditional on support from stockholders representing 75 percent of Stuttgart, Germany-based Celesio’s stock.

Elliott, the U.S. hedge fund run by Paul Singer, said Dec. 10 the offer undervalues Celesio and the firm won’t tender its shares. Elliott holds more than 25 percent of the voting rights in Celesio.

Shareholders have until midnight Frankfurt time tomorrow to tender stock in the offer. McKesson would have to file a new offer by midnight tonight if the company wants to get an extension of the acceptance deadline by two weeks, according to German takeover law.

Celesio rose 9.3 percent to close at 24.50 euros in Frankfurt, the biggest gain since May 4, 2010. McKesson climbed 4.9 percent to close at $169.81 in New York, the biggest single-day gain since July 26.

Reuters reported the talks earlier today. Dow Jones, citing a person briefed on the matter, reported today that McKesson might be willing to pay around 25 euros a share.

A spokesman for Elliott declined to comment. Calls and an e-mail to McKesson weren’t returned. A spokesman for Celesio couldn’t immediately be reached for comment.

FIFW NSN MXM05D6S972E <GO> McKesson Rises to Highest Value on Agreement to Buy Celesio (1)

FIFW NSN MV6NVD6TTDSW <GO> Haniel Said to Hire JPMorgan to Explore Celesio Stake Sale

To contact the reporters on this story: Eva von Schaper in Munich at evonschaper@bloomberg.net; Aaron Kirchfeld in London at akirchfeld@bloomberg.net

To contact the editors responsible for this story: Phil Serafino at pserafino@bloomberg.net; Aaron Kirchfeld at akirchfeld@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.