Mergers And Takeovers Are On The Rise, Bringing Conflicts With Them
Takeovers in the health care industry are increasing, and experts don't see the pace slowing down soon. Yet unexpected conflicts of interest can sometimes accompany the deals.
The Associated Press:
Takeover Fever Spreads In Healthcare Industry
Almost 1 in 4 dollars in takeovers this year involved a company in healthcare, and the size of those deals is immense. The total value of healthcare mergers and acquisitions in the United States has more than tripled compared with five years ago, according to the data firm Dealogic. Even in the face of rising interest rates, which would make deal-making more expensive, business insiders see few reasons why momentum in the healthcare sector will ease any time soon. (Murphy, 11/15)
The New York Times:
After Merger, Two Competing Drugs And Billion-Dollar Questions
The investing world is riddled with conflicts of interest that can surprise even the most sophisticated investor. Learning that lesson the hard way are holders of an instrument issued in 2011 when Sanofi, the giant French pharmaceutical company, took over Genzyme, a biotech concern based in Cambridge, Mass. (Morgenson, 11/13)
In other news, a generic-drug maker's takeover offer is rejected and the U.S. Treasury could be a "key hurdle" in any deal between Pfizer and Allergan -
The Wall Street Journal:
Mylan Loses Hostile Bid For Perrigo
Mylan NV suffered defeat Friday in a landmark hostile takeover bid, dealing a blow to the generic-drug maker and casting doubt on a pharmaceutical sector that has driven a surge in global deal making. Perrigo Co. shareholders rejected Mylan’s $26 billion takeover offer, the companies said Friday. (Hoffman and Mattioli, 11/13)
The Wall Street Journal:
What Treasury Could Do To Block An Allergan-Pfizer Deal
Amid speculation that the U.S. Treasury would cast a skeptical eye on any deal that Pfizer Inc. and Allergan PLC might reach that would move Pfizer’s headquarters outside the U.S., Citigroup Inc. analyst Liav Abraham is weighing in on what exactly the Treasury could do to block a deal. ... Ms. Abraham said it wouldn’t be a surprise if Treasury sought to block such a deal “given the high political sensitivity surrounding the redomicile of Pfizer to a lower tax jurisdiction.” (Farrell, 11/13)
