Celgene news concerning the company’s ongoing deal with Bristol-Myers Squibb (NYSE:BMS) has CELG stock on the rise Friday.
Bristol-Myers Squibb notes that two independent proxy advisory firms are putting their weight behind its deal to acquire Celgene (NASDAQ:CELG). This positive Celgene news is what has the company’s stock up today.
Bristol-Myers Squibb says that both Institutional Shareholder Services and Glass Lewis & Co. are standing behind the deal. They are advising shareholders of BMS stock to vote in favor of issuing new shares of the stock for use in the deal with CELG.
Here’s Institutional Shareholder Services’ statement on the deal.
“Overall, the deal’s strategic rationale is sound. The two companies have a complementary overlap in therapeutic focus, and the transaction diversifies BMY’s revenue stream… The transaction also significantly enhances BMY’s pipeline, raising the number of late-stage drugs from one to six.”
The following is what Glass Lewis & Co. thinks about the two companies coming together.
“Based on our research, review and analysis, we believe the proposed merger is strategically compelling and presents the opportunity for potentially significant returns to shareholders of the combined company, including existing Bristol-Myers holders.”
Bristol-Myers Squibb also points out that it isn’t pleased to see both of these independent proxy advisory firms giving the deal their support. If all goes well, the deal is set to close in the third quarter of 2019.
CELG stock was up 7% and BMS stock was down 1% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
