Bristol-Myers says shareholder vote to approve Celgene takeover

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Bristol-Myers says shareholder vote to approve Celgene takeover

On Friday, the 12th of April 2019, Shareholders of Bristol-Meters Squibb Co. had approved the company’s acquisition of Biotech Celgene Corp. at a $74 billion takeover deal, despite a dispute campaign launched by activist hedge fund Starboard Value LP to scamper the takeover.

According to the officials from Bristol-Myers Squibb Co., a US-based pharmaceutical company headquartered in New York City, about 75.7 shares were voted in favor of the acquisition deal. Claiming the deal to be a right transaction for the drugmaker, at a post-vote press conference, Bristol-Myers Chief Executive, Giovanni Caforio said to the reporters, “We, from a management perspective, from a board perspective, truly believe this is the right transaction for us.

The focus is on us right now to execute on the integration and then deliver the value of the combined portfolio, to confirm that the new company will deliver significant value for shareholders”. In a separate statement, Celgene said that 70 percent of its outstanding shareholders who were entitled to vote, had voted in favor of the takeover.

In early January, Bristol Myers had expressed its intent to purchase Celgene at a cash and stock transaction to remark the largest takeover ever in the pharmaceutical industry. However, Starboard later called the merger poorly conceived and ill-advised.

Besides, they had criticized the management board of Bristol Myers saying that the US drugmaker would not be able to execute the risky deal successfully. Despite sheer criticism and speculation, the deal would more likely to be closed in the third quarter of 2019, officials of both of the companies said.