US hedge fund Elliott International Ltd. on Monday dashed hopes it would accept American wholesale drugs firm McKesson Corporation's $8.3 billion offer for its German counterpart Celesio AG. Elliott said it had irrevocably bound itself not to accept the bid in its current form.
According to Reuters, Elliott has spent about €800 million ($1.09 billion) building a stake of more than 20% in Celesio. The hedge fund run by US investor Paul Singer earlier rhis month urged McKesson to sweeten its bid.
Elliott in a statement said that reports suggesting that it will change its mind and accept McKesson's offer are categorically incorrect. In fact, its final, binding decision is not to accept McKesson's offer on its current terms, the hedge fund added.
McKesson agreed to buy Celesio in October for $8.3 billion, including debt. The US drug company is seeking to boost its purchasing power with pharma majors, the report said.
Elliott said that McKesson's current offer substantially undervalues Celesio. The hedge fund has 25.16% of the voting rights in the company, wrote Reuters.
Join the Conversation