BREAKING NEWS
This content is not available in your region

Proxy advisor ISS backs Bristol-Myers takeover of Celgene

Proxy advisor ISS backs Bristol-Myers takeover of Celgene
FILE PHOTO: Logo of global biopharmaceutical company Bristol-Myers Squibb is pictured on the blouse of an employee in Le Passage, near Agen, France March 29, 2018. REUTERS/Regis Duvignau/File Photo   -   Copyright  Regis Duvignau(Reuters)
Text size Aa Aa

By Svea Herbst-Bayliss and Michael Erman

NEWYORK (Reuters) – Proxy advisory firm Institutional Shareholder Services on Friday recommended that shareholders of drugmaker Bristol-Myers Squibb Co vote in favour of its proposed $74 billion (56.82 billion pounds) takeover of rival Celgene Corp.

Bristol-Myers’ second largest shareholder, Wellington Management, and activist investor Starboard Value LP have opposed the deal, calling it “poorly conceived and ill-advised.”

“The proposed transaction has sound strategic rationale and the valuation appears reasonable,” ISS said in its report.

The ISS recommendation is a victory for the company and significantly increases the chances that many big mutual funds will back the deal. ISS’ opinions are sent to roughly 1,400 investors, and they are thought to influence many of their decisions.

Bristol 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.

If the deal is approved, Bristol-Myers shareholders will own 69 percent of the company and Celgene shareholders would own the remainder.

(Reporting by Svea Herbst and Michael Erman; Editing by Chizu Nomiyama and Steve Orlofsky)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.