Will Bristol-Myers Squibb (BMY) succeed in acquiring Celgene (CELG)?
The proposed $74 billion deal is under pressure now that two investments firms are opposing the acquisition. On Wednesday, Wellington Management, the largest Bristol shareholder with 8 percent of its stock, argued the deal asks Bristol stockholders to accept too much risk, is priced “well below” asset value, and “could be more difficult to achieve than depicted” by Bristol management.
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Mr Chesney’s comment is a bit off – “The deal shrewdly accounts for Celgene’s principle risks.” Certainty cancels out risk, and since other wags argue that Celgene has been proved to have no principles, that cannot be considered a principal risk.