Celgene Shares Trade Well Below Takeover Price Premarket
January 03 2019 - 8:42AM
Dow Jones News
By Colin Kellaher
Bristol-Myers Squibb Co.'s (BMY) deal to buy Celgene Corp.
(CELG) values the biopharmaceutical company at a 53.7% premium
based on Wednesday's closing prices, but Celgene shares are up only
33% premarket after a drop in Bristol's share price.
Bristol-Myers said it will issue one share and $50 cash for each
Celgene share, for a value of $102.43 a share based on Bristol's
Wednesday's closing price of $52.43.
Shares of Bristol-Myers were recently down 12.9% to $45.65 in
premarket trading, and shares of Celgene, which closed Wednesday at
$66.64, were up 33.2% to $88.73.
Celgene holders will own 31% of the combined company when the
deal closes.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
January 03, 2019 08:27 ET (13:27 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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