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)
- Update: Elliot says that two of its funds have agreed to sell their convertible bonds and shares in Celesio; from McKesson's press release, it wasn't clear what the status of the Elliot-held stock would be.
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
Oct. 25, 2013, 11:32 AM
- Some color from Morgan Stanley's McKesson (MCK +3%) upgrade: Analyst Ricky Goldwasser has "high confidence in MCK achieving and potentially exceeding synergy targets [and thinks] the market still underestimates [the] strategic value of NorthStar, which gives MCK an advantage and greater control of sourcing vs. peers and could drive incremental benefit."
- Similarly, Baird says "all systems appear to be firing [and] the Celesio deal makes sense and is highly accretive." Analyst Eric Coldwell recommends "aggressive purchase" of the shares and lifts his price target to $191 from $150.
Oct. 25, 2013, 8:53 AM
- McKesson (MCK) upgraded to Overweight from Equalweight at Morgan Stanley.
- Shire (SHPG) upgraded to Buy from Neutral at BofA.
- Forest Labs (FRX) upgraded to Market Perform from Underperform at BMO. Price target hiked to $33 from $27.
- Citi initiates Mylan (MYL) at Neutral with a price target of $42.
- Citi starts Teva (TEVA) at Buy with a $47 price target.
- Citi starts Actavis (ACT) at Buy with a $172 price target.
Oct. 24, 2013, 9:40 AM
- Leerink weighs in on McKesson's (MCK +6.4%) deal for Celesio.
- "It appears MCK will be acquiring all of Celesio, which we view favorably, since it will give the company [the] operational control necessary to drive synergies," analyst David Larsen says, adding that "the benefits of the deal include increased supply chain efficiency and global sourcing, global distribution and logistics capabilities that bring new value and service to manufacturing partners, innovative technology and business services and efficiencies."
- MCK upgraded to Outperform from Market Perform.
- Price target is $170.
- Also: MCK tops estimates for Q2
Oct. 24, 2013, 9:12 AM
Oct. 24, 2013, 8:27 AM
- Shares of McKesson (MCK) are up 7% premarket as the company blows away estimates for FQ2.
- Revenue growth by segment: Distribution Solutions, +11%; Canadian revenues, +14%; Medical-Surgical distribution and services, +68% (that's the PSSI acquisition coming through).
- CEO John Hammergren is "pleased with the excellent performance across all businesses."
- FY14 outlook: Adjusted EPS of $8.40-8.70 versus previous guidance of $8.05-8.35 and against consensus of $8.33.
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