Feb. 18 (Bloomberg) -- Greenhill & Co. gained the most in more than two years after the firm acted as sole adviser to Actavis Plc in its $25 billion bid for Forest Laboratories Inc.
Greenhill, founded by former Morgan Stanley President Robert F. Greenhill, rose 8.7 percent to $52.98 at 4:15 p.m. in New York. The rally buoyed the stock after a 16 percent slide this year through last week, following a fourth quarter that included a 25 percent drop in advisory revenue.
“There was definitely a great deal of relief to see them on a large deal,” said Brennan Hawken, an analyst at UBS AG, who assigns a neutral rating to the stock. “Often when you have a deal that big, there is more than one adviser. They are getting all the revenue on the buy side.”
Hawken said the stock had become a target of short-sellers, who are probably buying today to cut their losses after betting on a further decline. Jeffrey Taufield, Greenhill’s spokesman, said in an e-mail that the company had no comment.
Actavis, the world’s second-largest generic-drug maker by market value, is seeking to become a developer of brand-name drugs.
To contact the reporter on this story: Sarah Jacob in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Rick Green at email@example.com