Friday, April 10, 2009

Bristol-Myers in take-over talks

I had this post on March 14, titled "The Next Drug Takeover"

It may not have made any sense, unless you knew what that the image was!

Now maybe you missed the take-over story on Textron, but the same principle applies!

Clicking on the boat show picture, gave you "textrontobebought."

Clicking on the picture of taxol, on the March 14 story gives you "thegnomeknows." And taxol of course, is Paclitaxel, BMY's cancer drug.

Now today, in the WSJ we have a story that "Bristol Meyers Seeks to Stay Independent"

Bristol-Myers Squibb Co. is looking to do six or seven additional partnerships or acquisitions with the $9 billion in cash it has on hand to bolster its drug pipeline, Chief Executive James Cornelius said.

In the face of several recent pharmaceutical megamergers and expected further industry consolidation, the New York drug maker is seeking to remain competitive as an independent, midsize company, according to senior management. Its biggest-selling drugs include anticlotting drug Plavix, hypertension medicine Avapro, cancer treatment Erbitux and the psychiatric drug Abilify.

Which just means that BMY is possibly haggling over price with the overture it may have received!

But of course, they'll pretend that isn't the story, when in fact, it probably is!

And now, of course, I can say BMY is in take-over talks, because they just said that in today's WSJ.

They just didn't mention the part about them being acquired, except for this blip by the CEO:

"There's no urgency to put a 'for sale' sign out there, but I'm also cognizant of shareholder value."

Which is the difference between Wall Street and Main Street.

On Main Street, when you want to sell a house, and you don't have a buyer, you put out a 'for sale' sign.

On Wall Street, you only put out a 'for sale' sign, after your deal falls through.

Which is why James Cornelious said there was "no urgency."

That's just Wall Street parlance for, "We'll do a deal, when our golden parachutes get done!"

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