This Is One Company That Could Break Up Bristol-Celgene Deal - (Investor's Business Daily via NewsPoints Desk)

  • Bristol-Myers Squibb is spending $74 billion to buy Celgene, but Mizuho analyst Salim Syed suggested Johnson & Johnson, Pfizer and Amgen could still make a play for Bristol-Myers Squibb, reported Investor's Business Daily.

  • Nearly 87 percent of respondents in a recent survey from Mizuho Securities expect Bristol-Myers Squibb to complete its Celgene acquisition, but Syed noted that Celgene stock is about 15 percent off from the deal price.

  • Is "somebody going to pursue Bristol-Myers Squib (and break the Bristol/Celgene deal)?" Syed asked in a report to clients, adding it is "probably unlikely. Johnson & Johnson is the biggest risk in our view."

  • Media reports have suggested Amgen could go after Bristol-Myers Squibb, Syed said. He noted that the recent stock decline for the latter company in the wake of its planned Celgene acquisition puts it at a discount to Amgen and this "creates a potential window to do a deal."

  • Syed assumes $2.5 billion in synergies between Amgen and Bristol-Myers Squibb, which would match expectations for the Celgene deal. The first year would also result in 20-percent earnings per share accretion for an Amgen-Bristol-Myers Squibb merger, he added.

  • Meanwhile, the dark horse contender "nobody talks about" would be Johnson & Johnson, Syed said, noting that the company is "very conservative" when it comes to takeovers, but it nevertheless put up $30 billion to buy Actelion Pharmaceuticals in 2017.

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