2017-03-27 18:00:28 | Credit Suisse analysis shows value in hypothetical Pfizer-Bristol mergerCredit Suisse analysts revisited the idea of a Bristol-Myers Squibb (BMY) merger on Monday, saying a hypothetical acquisition by Pfizer (PFE) could deliver shareholder value. CREDIT SUISSE ANALYZES BRISTOL SALE: Credit Suisse's Vamil Divan revisited the hypothetical sale of Bristol-Myers Squibb (BMY) Monday, arguing that an acquisition by Pfizer (PFE) could be net positive for the company. The analyst, who reminds investors that he called a Bristol takeout "unlikely" in a March 5 note, says the concept remains "one of the most common topics of discussion in our investor meetings" in light of the drugmaker's ongoing challenges and activist targeting. Divan says his colleagues at Credit Suisse's "HOLT" proprietary valuation group have now analyzed a potential Pfizer-Bristol deal and concluded that it would have a "positive impact" on the company's return on capital profile. Specifically, HOLT forecast that an all-cash deal "would lead to about $5B or approximately $.80 per share in value creation," assuming Pfizer can cut 30% from Bristol's operating costs, Divan writes. PRICE ACTION: Shares of Bristol-Myers Squibb closed Monday's session up 0.25% to $56.04. Other companies previously discussed as potential Bristol acquirers include Novartis (NVS) and Gilead (GILD). | |
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