McKesson shares fall as distributor’s planned buyout of Celesio crumbles «
Shares of drug distribution giant McKesson Corp. tumbled Monday after the company said its plans to buy European rival Celesio AG had fallen through.
McKesson /quotes/zigman/247413/delayed /quotes/nls/mck MCK shares were halted just prior to the announcement, which came shortly before 1 p.m. Eastern. When trading resumed, shares plunged by more than 6% but recovered somewhat. McKesson shares were off 4%, or $7.29 to $168.15 in recent action.
Getty ImagesMcKesson said it was unable to get the necessary support of 75% of Celesio /quotes/zigman/422736/realtime DE:CLS1 shareholders in order to consummate the deal it for months had been hoping to complete. Celesio’s biggest shareholder, hedge fund Elliott Management, balked at the deal.
John Hammergren, McKesson’s chief executive, told the JP Morgan Healthcare Conference in San Francisco Monday that the company had upped its offer from $8.3 billion. It was unclear whether that offer was raised to $9 billion, as was reported by some news outlets.
He said learned the deal would fall through as he walked to the conference from McKesson’s headquarters, just minutes before appearing on stage.
“It clearly puts us back to the drawing board in some respects,” Hammergren said. He later added, “There is no way for us to put this tender back together.”
Hammergren said the company wants to make more acquisitions but doesn’t want to overpay for them, and could be open to the prospect of joint ventures, such as the generic drug distribution pact between McKesson rival Cardinal Health Inc. /quotes/zigman/135665/delayed /quotes/nls/cah CAH and CVS Caremark Corp. /quotes/zigman/169740/delayed /quotes/nls/cvs CVS