Celgene-Bristol: Deal Or No Deal?

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About: Celgene Corporation (CELG), Includes: BMY
by: JP Research
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JP Research
Long/short equity, Growth, long-term horizon, macro
Summary

Large BMY shareholders are starting to oppose its acquisition of CELG.

The uncertainty of whether the deal will go through or not is driving the fall in CELG share price and increasing its spread.

We believe that the deal will go through as these shareholders are still short of the majority.

CELG shares to rebound to $90+; hold onto CELG.

In January 2019, Bristol-Myers Squibb (BMY) announced its intention to acquire and merge with Celgene (CELG) for $50 cash plus one share of BMY plus a CVR valued at $9/share which