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Jan. 14, 2014, 3:17 PM
- Morgan Stanley adjusts the numbers for McKesson (MCK -0.4%) following the failed Celesio bid, cutting the price target on the shares to $180 from $190.
- Analyst Julie Murphy posits three scenarios going forward: MCK could establish a "new JV with RAD / WMT and/or Celesio;" the company could buyback shares, as it "had ~$3.5B in cash at the end of the December quarter of which $1.5B is ex US," or they could make "another go at Celesio."
- FY15 EPS estimate cut to $10.47 from $11.03.
Jan. 14, 2014, 9:09 AM
- McKesson (MCK) came pretty close to succeeding in its $8.4B bid for Celesio (CAKFY), receiving tenders representing 72.33% of shares when including the dilutive effect of convertible bonds.
- The U.S. company had set a target of 75% and had won the support of hedge fund Elliot Management, which is a major Celesio shareholder.
- McKesson is now looking at alternative ways of working with the German company, including a joint venture.
Jan. 13, 2014, 2:18 PM
- "We naturally expected shares would decline following the disappointing news," FBR's Tom Gallucci says of McKesson (MCK -4.8%), in the wake of the company's failed bid for Celesio (CAKFF).
- Nevertheless, Gallucci says MCK is "well positioned going forward [as] the company's core operations have been the best performing in the sector over the past year."
- Outperform rating maintained.
Jan. 13, 2014, 1:04 PM
- Reopened for trade, McKesson (MCK -6.7%) gives back about all of last week's gains following its failed bid for Celesio (CAKFF -1%).
- CEO John Hammergren: "We are well positioned and will continue to explore and evaluate opportunities to further strengthen our businesses through our disciplined approach to capital allocation.”
Jan. 13, 2014, 12:59 PM
Jan. 9, 2014, 7:03 AM
- As flagged, McKesson (MCK) has increased its bid for German peer Celesio (CAKFF) to €23.50 a share from €23 as it looks to win support for the deal from Elliott Management.
- The U.S. hedge fund, which owns almost 25% of Celesio, had opposed the original offer as being too low but has agreed to sell its convertible bonds to McKesson.
- The tender offer is now valued at around €4B ($5.4B) and expires at midnight tonight in Frankfurt. McKesson has made its proposal conditional on obtaining at least 75% of Celesio's shares. (Previous) (PR)
Jan. 9, 2014, 3:52 AM
- McKesson (MCK) has reportedly increased its bid for German peer Celesio to €23.50 a share from €23 in order to try to persuade hedge fund Elliot International to support the offer from the U.S. drugs wholesale group.
- Elliot, which owned a 22.7% voting stake in Celesio as of late December, rejected McKesson's initial proposal as being too low.
- McKesson has made its offer conditional on obtaining at least 75% of Celesio's shares by tonight. It has already agreed to buy 50.01% from diversified holding company Franz Haniel & Cie. (Previous)
Jan. 8, 2014, 8:57 AM
- McKesson (MCK +2.3%) is reportedly preparing to offer concessions to hedge fund Elliott International so that the latter will support the U.S. pharmaceutical distributor's $8.3B bid for German peer Celesio.
- McKesson has made its proposal conditional on obtaining at least 75% of Celesio's shares - including those from the convertible debt - by tomorrow night. McKesson has already agreed to buy 50.01% of Celesio from diversified holding company Franz Haniel & Cie.
- As of late December, Elliot owned a 22.7% voting stake in Celesio.
Jan. 7, 2014, 3:33 AM
- National healthcare spending grew less than 4% for the fourth year in a row in 2012, rising 3.7% to $2.8T, a report by the Centers for Medicare & Medicaid Services shows.
- As a proportion of the total economy, expenditure edged down to 17.2% from 17.3%.
- The authors of the report said that the continued slow increase in spending was due to the lingering impact of the recession but that Obamacare has had a limited effect. However, the White House said the figures vindicated the President's signature policy.
- The authors were also cautious about whether the trend will continue, or whether growth will return to the higher levels experienced prior to the recession.
- The cost of hospital care rose 4.9% in 2012 and that for doctors' services and outpatient clinics 4.6%, although spending on prescription drugs increased just 0.4%, due to patent expiries.
- Relevant tickers: AET, HNT, HUM, UNH, WLP, MOH, HCA, CYH, THC, UHS, HMA, LPNT, WAG, CVS, BIOS, RAD, MHS, PMC, OCR, MCK, CAH, ABC, ESRX, MHS, CAH.
- ETFS: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS.
Jan. 6, 2014, 2:09 PM
- McKesson (MCK -0.1%) upgraded to Strong Buy from Outperform at Raymond James.
- DaVita (DVA +0.4%) upgraded to Outperform from Market Perform at Raymond James.
- Idenix Pharmaceuticals (IDIX -0.3%) upgraded to Buy from Neutral at UBS.
- Abbott Labs (ABT +1.5%) upgraded to Overweight from Equalweight at Morgan Stanley.
- Medtronic (MDT +2%) upgraded to Overweight from Neutral at JPMorgan. Price target is $69.
- Vertex Pharmaceuticals (VRTX +2.5%) upgraded to Buy from Neutral at UBS.
- Ocera Therapeutics (OCRX +2.7%) upgraded to Outperform from Market Perform at BMO.
- Boston Scientific (BSX +3.2%) upgraded to Overweight from Equalweight at Morgan Stanley.
- Exelixis (EXEL +4.6%) upgraded to Overweight from Neutral at Piper.
- St. Jude Medical (STJ +3.8%) upgraded to Overweight from Equalweight at Morgan Stanley.
Dec. 25, 2013, 1:30 PM
- "We believe the most likely way this happens is for McKesson (MCK) and Elliott (or their intermediaries) to find a common ground whereby MCK raises its bid subject to Elliott agreeing to tender all of its holdings," Deutsche's George Hill says, referencing MCK's offer for Celesio.
- Hill thinks that after the "tough talk" is over and the deal is done, the potentially sweetened bid "could shave $0.15-0.20 off of MCK's fully consolidated near-term deal accretion estimates of $1.00-1.25."
- "MCK shares likely have 10% downside risk if the deal breaks to $140-145 per share," Hill adds.
- For more, see here.
Dec. 23, 2013, 7:03 AM
- Elliott International says it remains "irrevocably bound" to reject McKesson's (MCK) $8.3B bid for German peer Celesio in its current form. The hedge fund was responding to reports that it could change its mind and accept McKesson's proposal.
- Elliot, which owns a 22.7% voting stake in Celesio when taking two convertible bonds into account, wants McKesson to sweeten its offer.
- McKesson has made its bid conditional on obtaining at least 75% of Celesio's shares, including those from the convertible debt. McKesson has already agreed to buy 50.01% of Celesio from diversified holding company Franz Haniel & Cie.
Dec. 5, 2013, 3:50 AM
- McKesson (MCK) has launched a tender offer to buy the outstanding shares of German peer Celesio as the U.S. drugs distributor attempts to prevent hedge fund Elliott International from blocking the deal.
- McKesson has made its offer conditional on obtaining at least 75% of Celesio's shares, including those from two convertible bonds. When taking the debt into account, Elliot owns 21.05% of Celesius.
- McKesson has already agreed to buy 50.01% of Celesio from diversified holding company Franz Haniel & Cie. The total is worth $8.3B.
Nov. 21, 2013, 8:58 AM
- Deutsche starts McKesson (MCK) at Buy.
- MCK is analyst George Hill's "preferred name among the drug wholesalers" given the "many earnings levers [it has] to pull on including synergies from the PSS deal, the recent Celesio deal, the potential for future transactions, deleverag[ing], [and] share repurchases."
- Also bullish at last check: FBR, Morgan Stanley, Leerink, and Baird.
- Price target is $181.
Oct. 29, 2013, 10:18 AM
Oct. 25, 2013, 4:28 PM
- McKesson Corporation (MCK) declares $0.24/share quarterly dividend, in line with previous.
- Forward yield 0.62%
- Payable Jan 2; for shareholders of record Dec. 2; ex-div Nov. 27.
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