(Reuters) – Activist investor Starboard Value LP will vote against Bristol-Myers Squibb Co’s $74 billion acquisition of Celgene Corp, the hedge fund said on Thursday, the latest shareholder to come out against what would be the pharmaceutical world’s biggest ever takeover.

In a letter to Bristol-Myers shareholders, Starboard called the deal “poorly conceived and ill-advised” and said the company’s board should be open to evaluating all alternatives, including a sale of the company.

Starboard’s letter comes a day after Wellington Management, which owns nearly 8 percent of Bristol-Myers, said the buyout was too risky and expensive.

Bristol-Myers investors are due to vote on the deal at a special meeting scheduled for April 12.

Celgene’s shares fell 8 percent on Thursday while Bristol-Myers was up 1.5 percent.

In a letter to employees dated Feb. 27 and filed to regulators on Thursday, Bristol-Myers expressed disappointment with the opposition of institutional investor Wellington Management to the Celgene deal, and said it would press ahead.

“Even with the combined voting power for both Wellington and Starboard Value, we believe there continues to be a high hurdle for opposition to reach majority,” said Andy Hsieh, a William Blair analyst.

Sources have told Reuters that Dodge & Cox, Bristol-Myers’ fifth largest shareholder, is also unhappy with the deal.

Bristol and Celgene through the deal hope to create a market leader in the lucrative treatment of cancer through their combined portfolios.

Source: Read Full Article