Starboard Value Opposes Bristol-Myers Squibb's Acquisition Of Celgene

(RTTNews) - Starboard Value LP, a stockholder of Bristol-Myers Squibb Company (BMY), said that it has delivered an open letter to Bristol-Myers stockholders expressing its belief that the proposed merger with Celgene Corp. is ill-advised and not in the best interests of Bristol-Myers stockholders.

Starboard said it expects to file preliminary proxy materials in opposition to the Merger in the coming days in connection with the Company's Special Meeting of Stockholders scheduled to take place on April 12, 2019, at which Bristol-Myers stockholders will vote on the issuance of shares of Bristol-Myers common stock pursuant to the Merger.

On Wednesday, Bristol-Myers Squibb Co's shareholder Wellington Management said that it did not support the U.S. drugmaker's $74 billion acquisition of biotech Celgene Corp.(CELG).

Wellington Management, which owns about 8 percent of Bristol-Myers shares, said they believe the deal is too risky and too expensive, and that alternative options to create value for shareholders "could be more attractive."

In January 2019, Bristol-Myers Squibb said it would acquire Celgene in a cash and stock transaction with an equity value of approximately $74 billion.