Market commentators have been waiting for some time for Pfizer (NYSE:PFE) to do something on the M&A front. Although Pfizer actually does not have the generic fall-off risk of Lilly (NYSE:LLY) or Bristol-Myers Squibb (NYSE:BMY), the loss of Lipitor to generics is a threat, and analysts have been clamoring for Pfizer to do something to ignite the growth prospects. (For more, see Top-Heavy Pharmaceuticals.)
I am not sure this is quite what anybody had in mind.
On Tuesday morning, Pfizer announced that it was acquiring smaller pharmaceutical company King Pharmaceuticals (NYSE:KG) in an all-cash deal worth $3.6 billion. This deal values King at $14.25 per share, or a 40% premium to the prior day's closing price.
Please click the link to read more:
http://stocks.investopedia.com/stock-analysis/2010/Pfizers-King-For-A-Day-PFE-KG-LLY-BMY-PTIE1014.aspx
Showing posts with label King Pharmaceuticals. Show all posts
Showing posts with label King Pharmaceuticals. Show all posts
Thursday, October 14, 2010
Wednesday, August 11, 2010
The Curious Case of PPCO
Late on Monday, Endo Pharmaceuticals (Nasdaq:ENDP) announced that it was acquiring its small partner Penwest Pharmaceuticals (Nasdaq:PPCO) for $5 per share, all of which is to be paid in cash. Normally, this would be a "no big deal" type of announcement - little deals happen all the time, and there would not be much significance to the deal beyond its impact on just the two companies. This deal is a bit more curious, though.
Somebody Seemed to Know Something
If you look at the behavior of Penwest's stock and options prior to the announcement of the deal, you too may find your eyebrows lifting a bit. The press release for the deal hit the wires at 3:30pm, but Penwest's stock started moving relatively early in the day on Monday, continuing a move that began roughly in the middle of the day on the preceding Friday. Keep in mind, this was a stock that tended to plateau for a few months at a time, so it was not as though big moves were normal.
To read the complete article:
http://stocks.investopedia.
Somebody Seemed to Know Something
If you look at the behavior of Penwest's stock and options prior to the announcement of the deal, you too may find your eyebrows lifting a bit. The press release for the deal hit the wires at 3:30pm, but Penwest's stock started moving relatively early in the day on Monday, continuing a move that began roughly in the middle of the day on the preceding Friday. Keep in mind, this was a stock that tended to plateau for a few months at a time, so it was not as though big moves were normal.
To read the complete article:
http://stocks.investopedia.
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