Celgene Shares Jump After Bristol-Myers Wins Deal Backing From Advisory Firms

The transcript discusses the decision of activist investors, particularly Starboard, to not pursue further actions against a deal involving Bristol Myers Squibb. The merits of the deal, which aims to combine two complementary drug companies, are highlighted. The ISS report suggests no realistic acquisition case for Bristol, making this the only viable deal. Fund managers often follow ISS and Glass Lewis recommendations due to the complexity of voting on numerous shares. The market spread has tightened, indicating confidence in the deal's completion. Bristol Myers Squibb aims to enhance R&D and address patent cliffs through this merger.

What was Starboard's decision regarding the pharmaceutical merger?

• They chose to remain neutral.

• They decided to support the merger.

• They increased their shareholding in the company.

• They decided not to pursue further actions and vote against it.

Which party was rumored to have an interest in acquiring Bristol?

• Novartis

• Pfizer

• Merck

• Johnson & Johnson

What is the role of ISS and Glass Lewis in the voting process?

• They provide recommendations that fund managers often follow.

• They make binding decisions.

• They directly vote on behalf of shareholders.

• They have no influence on the voting process.

What is the market's perception of the deal's completion?

• The market is uncertain about the deal.

• The market believes the deal will not happen.

• The market is indifferent to the deal.

• The market thinks the deal is likely to be completed.

What strategic advantage does the merger offer Bristol Myers Squibb?

• Expansion into new geographical markets

• Increased marketing capabilities

• Enhanced R&D expertise and a strong combined pipeline

• Reduction in operational costs