Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, December 13, 2013

Article Excerpt

MCKESSON CORP., $157.39, New York symbol MCK, recently agreed to buy Celesio AG, a German firm that distributes prescription drugs in Europe and Brazil. The company will pay $8.3 billion for Celesio, including its debt. To put that in context, McKesson’s market cap (or the value of all its outstanding shares) is $36.2 billion. Shareholders representing at least 75% of Celesio’s votes must approve the deal. The family of Celesio’s founder, which controls 50.01%, has already agreed to the takeover. However, Elliott Management, a private equity firm that holds roughly 25% of Celesio’s shares, now opposes the purchase. Even so, it looks like McKesson will eventually succeed. If takeover falls through, Celesio’s shares will likely fall 23%, to their pre-takeover price. That could wipe out any potential profits Elliott hopes to realize on its Celesio holdings. McKesson is still a buy. Please make sure you are logged in to your account to access these articles. Click here if you’ve lost your password. McKesson…