Inside This Issue - News
McKesson bid for Celesio fails
January 20th, 2014
SAN FRANCISCO – McKesson Corp. said it has failed in its bid to acquire the German drug wholesaler Celesio.
“While we are disappointed that we were not successful in completing our offers for Celesio, we have a track record of great performance, a strong balance sheet, and demonstrated leadership and scale across our markets,” chairman and chief executive officer John Hammergren said after the company failed to get the approval of 75% of Celesio’s shareholders that it needed to finalize the deal.
McKesson’s attempt to acquire the German distributor appeared to get a boost earlier this month after the company said it would increase its offer from its original 23 euros-a-share bid to 23.5 euros ($31.97).
The increased price was aimed at getting the New York-based hedge fund Elliot Management to agree to tender its 25% stake in Celesio.
Elliot had declined the original offer made in early December, saying it felt Celesio was worth more than the $8.3 billion McKesson was offering.
In October, McKesson announced that it had acquired a controlling stake in Celesio from Franz Haniel & Cie., the majority shareholder, and planned to start a tender offer for the remaining shares.
However, in order to complete the takeover McKesson needed 75% of Celesio’s shareholders to approve the deal and made the new offer in the hopes of getting Elliot to agree to sell its shares.
McKesson said the 23.5 euros a share was its last and best offer. The price had also been applied to all of Franz Haniel & Cie’s shares.
Analysts say the acquisition would have helped revive McKesson’s stalled expansion plans in Europe, giving the company 132 additional wholesale branches that supply 65,000 pharmacies and hospitals in 14 European countries.