Activist investor Starboard Value, an opponent of Bristol-Myers Squibb's (BMY -0.5%) $74B takeout of Celgene (CELG -0.1%), is investigating whether hedge funds are using a controversial stock-trading tactic to sway the vote in favor of the deal, turning their long positions in Celgene into big winners.
The tactic, called "empty voting," involves buying shares strictly for voting purposes, then selling them afterward.
Dan Loeb's Third Point and D.E. Shaw are mentioned as possible participants but this is unconfirmed.
Shareholders will vote on the merger in a few weeks.
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