Starboard abandons drive to scuttle Bristol, Myers and Celgene deal

NEW YORK: Activist hedge fund Starboard Value LP on Friday abandoned a campaign to convince Bristol-Myers Squibb Co shareholders to vote down the drugmaker’s proposed $74 billion takeover of biotech Celgene Corp after the two leading proxy advisory firms backed the deal. The firms, Institutional Shareholder Services (ISS) and Glass Lewis, said on Friday that Bristol-Myers shareholders should vote in favour of the deal. “Despite the substantial swell of support against this transaction, it is extremely difficult for shareholders to prevail without a supportive recommendation from ISS and Glass Lewis to vote against the transaction,” Starboard said in a statement. The hedge fund said it still plans to vote its shares against what it believes is a bad deal, but it will withdraw its proxy solicitation to get other shareholders to vote against it. The move is a victory for New York-based drugmaker Bristol-Myers and its Chief Executive Giovanni Caforio, who have mounted their own campaign to shore up investor support for the deal. Bristol-Myers’ shareholders are set to vote on the acquisition on April 12. Shares of Celgene rose 7.5 per cent to $93.99 in early afternoon trading. Bristol-Myers shares were off 1.1 per cent at $47.29. Bristol-Myers announced in early January that it planned to buy Celgene in a cash and stock transaction valued at roughly $74 billion that would bring together companies that specialise in oncology and cardiovascular drugs in what would be the largest pharmaceutical industry merger ever. — Reuters