The company has added three new directors to its board, thus extending it to 14 directors. NY-based activist investor, JANA partners has boosted its stake in the company, although sources say it is less than 1%.
In a move that saw Bristol-Myers Squibb’s shares jump up by 2%, WSJ has been reported that Carl Icahn, the billionaire investor, has taken a stake in the company, for what could be a possible takeover.
On Tuesday, Bristol-Myers disclosed that it has added three new members in its board of directors, a move that saw the tacit support of JANA Partners LLC.
The activist investor has been buying up the company’s stock.
For most of the day Bristol’s shares were down by nearly 2%. However, after WSJ’s report of Icahn building up his stake in the company, the company’s shares gained back most of its losses and closed at $54.78.
WSJ’s report did not identify the size of Icahn’s stake. However, WSJ reported that Icahn sees the company as potential takeover target, citing sources familiar with the matter at hand.
The addition of three new members to its board comes in the wake of Bristol-Myers falling behind Merck & Co Inc in the key field of immuno-oncology.
Its Opdivo drug has failed to prolong the survival rates of lung cancer patients, which happens to be the largest cancer market. Unlike its drug. Merck’s Keytruda managed to extend the survival chances of front-line patients who are undergoing treatment for NSCLC.
The company has stated that it expects to take a hit of $1.5 billion to $2 billion in connection with the restructuring process, which it announced last October.
It also announced that it has set aside $2 billion for an accelerated share repurchase program, which it will fund through debt and cash.
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