Bristol-Myers Squibb Co (NYSE:BMY) may be the next target for a takeover by Carl Icahn.
A new report claims that Carl Icahn has bought a stake in Bristol-Myers Squibb Co. The report doesn’t say how much of a stage the investor bought. Only that it was a large one. This is what has fueled talk that Icahn wants to initiate a takeover of the company.
Carl Icahn has reportedly been looking into the drug pipeline that Bristol-Myers Squibb Co has going and approves of it. The company has been performing poorly lately and has been adding a removing board members. This may give Icahn the pull he needs to start the takeover process, reports Fortune.
Bristol-Myers Squibb Co is working to develop a cure for cancer. It is possible that Carl Icahn will attempt to split the company up or sell it. If sold, the company would likely go for more than $100 billion. Its current market value is over $90 billion.
Carl Icahn isn’t the only activist investor that is interested in Bristol -Myers Squibb Co. Jana Partners LLC has also taken an interest in BMY. This activist investor is behind the recent announcement that the company will be adding three new board members. It is also the one that put pressure on the company to start its newly-announced $2-billion stock repurchase program, reports Forbes.
One problem that Bristol-Myers Squibb Co has been facing is a delay in approval for one of its treatments. This treatment is for lung cancer. The delay has caused fear that BMY may lose out to competitors working on similar treatments.
BMY stock was up 1% as of Wednesday evening.
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