German drugs wholesaler Celesio AG said its supervisory and management board recommended shareholders to accept the $8.3 billion takeover from McKesson Corp. Celesio viewed the offer price as fair.
According to a report by Reuters, hedge fund Elliott Management Corp. on Tuesday pressed for a higher offer than the €23 ($31.72) per share being offered by the American pharmaceuticals distributor.
Elliott earlier said that it won't sell its shares in Celesio because McKesson's offer undervalues the company. The hedge fund said that the offer doesn't compensate Celesio holders for McKesson's potential gain and fails to take the recent increase in equity prices into account, Bloomberg said in a separate report.
Elliot holds more than 25% of the voting rights in Celesio, the report said.
Celesio, in a statement on Wednesday, said after having considered various options, its board viewed a takeover by McKesson as the right strategic decision. The merger with McKesson is the most attractive option for Celesio, Reuters said.
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