Activist Investor Starboard Value said on Thursday that it intends to use its stake in Bristol-Myers Squibb to oppose the drug dealer acquisition of Celgene.
Smith claimed that the starboard was "surprised" to hear about the proposed acquisition on the heels of what he characterized by poor financial and stock price developments in In the past Bristol-Myers announced in January a deal to buy Celgene valued for a record $ 74 billion.
"The actions we take – especially our intent to encourage shareholders to block the proposed acquisition of Celgene insert – are not taken lightly," Smith added. "This notion has been solidified by the many other large, long-term shareholders who also seem to believe that this agreement is not in the interest of the shareholder."
The investment company Wellington Management also announced its opposition to the Bristol-Myers acquisition in a release on Wednesday. Wellington said it "doesn't believe the Celgene transaction is an attractive way to" business that "secures differentiated science and expands future revenue base."