Deals
Mallinckrodt Signals Slowing Deal Activity Amid Market Changes
- Board member Russell says health M&A may see two-year slump
- Jefferies banker says Fed rate hike may cut appetite for debt
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The feeding frenzy for health-care deals may be coming to an end, according to a board member of Mallinckrodt Plc, the drugmaker that has made four purchases exceeding $1 billion in the past two years.
Slumping stock prices, less favorable market reactions to deals, a potential rise in interest rates and litigation risk are weighing on the minds of company directors considering acquisitions, Angus Russell, a board member of Mallinckrodt and former chief executive officer of Shire Plc, said at the Jefferies International Ltd. health-care conference in London. Russell presided over more than two dozen acquisitions while at Shire.