Celgene buyout by Bristol-Myers still likely to occur, says Jefferies

Shares of Celgene (CELG) are trading down around 10% after Bristol-Myers’ (BMY) top shareholder publicly announced it plans to vote against the planned acquisition, Jefferies analyst Michael Yee tells investors in a research note. While unclear if other Bristol shareholders who are still in the stock will follow suit, it is possible that at least one other long-term top five holder may disagree with the Celgene transaction too, Yee adds. However, he thinks various data points suggest it is still a major “uphill battle” to block to deal and believes it will still likely occur. The analyst finds it important that according to his estimates, there is 25% “material overlap” in the holder bases that own both Bristol and Celgene. He keeps a Buy rating on Celgene with a $95 price target.
https://thefly.com/landingPageNews.php?id=2872213