Bristol-Myers Squibb Strikes Back! Response to Critics of Celgene Deal

Bristol-Myers Squibb announced its bid to acquire Celgene on January 3, 2019. However, the deal hit a snag. One of its biggest shareholders, Wellington Management Company LLP, has objected to the acquisition. Wellington owns about an 8 percent stake in Bristol-Myers. Another BMS shareholder, Starboard Value, also opposes the deal. Starboard has about a 1-percent ownership share. Starboard, in an open letter, called it “poorly conceived and ill-advised.” Another group, Dodge & Cox, who opposes the deal, has a 2-percent stake. Bristol-Myers Squibb is now fighting back, making efforts to sell the deal to its shareholders. In an open letter to stockholders, Bristol-Myers outlined the advantages of the deal, citing four specific points. They include: