M&A

BMS Offers to Buy The Rest of ImClone

In a regulatory filing this morning, Bristol-Myers Squibb announced it has offered to buy the 83% of ImClone it doesn’t already own for an all cash, $60/share or $4.5B. This offer represented a 30% premium over yesterday’s close but already in premarket trading, ImClone has hit $65/share.

I’ve been trying to figure BMS out for a few months now and this decision doesn’t solidify anything. Not that it isn’t a good business move (I think it is), I just wonder whether all these recent moves (e.g.; shedding non-core assets like Lantheus imaging and ConvaTech, acquiring Kosan and KAI-9803) were made to keep the company independent or as fodder for a merger.

I’m going to stick to my guns and say that BMS is fishing for a merger with a large Euro Pharma (read: GlaxoSmithKline, Sanofi or AstraZeneca). The acquisition of ImClone gives BMS full control over Erbitux ($1.3B in 2007 sales) and may be a move to consolidate major partnership to make the company a more attractive merger target.

Theoretically Related Posts

• August 4, 2008 -- Icahn Responds to BMS Offer for ImClone (0)
• October 3, 2008 -- Swami Predicts ImClone’s Future (1)
• September 10, 2008 -- ImClone Throws Down and Announces Additional Suitor (0)
• September 29, 2008 -- ImClone To Reveal Mystery Suitor? (0)
• November 14, 2008 -- BBM Offers to Acquire YM BioSciences for $29M (0)
• August 20, 2008 -- BMS Ponies Up for Elotuzumab (0)
• October 30, 2008 -- GlaxoSmithKline to acquires Genelabs Technologies for $57M (0)
• May 6, 2008 -- Bristol-Myers Squibb To Be Acquired By… [Insert Name Here]?? (5)
• October 23, 2008 -- GlaxoSmithKline and AFFiRiS Ink Alzheimer’s Disease Vaccine Deal (0)
• October 6, 2008 -- The Swami Was Right: Lilly Buys ImClone (0)

© 2008 Pharmababble.