Reuters' DealTalk is running a rather breathless piece this morning. If I didn't know better, I'd suspect that the Reuters staff writers are being played as patsies for the two pharma giants' buyer-stalking efforts. The purported "news report" seems more designed to help the investment bankers scare up buyers, or drive up prices, for the to-be-divested New Merial animal health businesses. Do go read it all, nonetheless:
. . . .As part of that process, the two drugmakers are now looking to shed assets worth several hundreds of millions of dollars, as they await regulatory approval for creating a group that would hold 29 percent of the global animal health market.
People familiar with the matter say Sanofi and Merck met investment banks recently and are likely to name advisers around the end of May. . . .
[T]he U.S.-French duo may have to divest businesses accounting for about 9 to 12 percent of annual sales, or some $450 to $650 million, to cut overlaps and placate competition watchdogs. . . .
Watch closely to see if Banc of America is named an adviser to Merck (and Goldman Sachs & Co. is not -- given that B of A defended Merck stock on the very afternoon that Goldman downgraded it). We shall, as ever, see -- but I don't think Goldman has had much success wooing Sanofi, in recent years, either. BNP Parabas seems to be Sanofi's recent local big-deal favorite.
[Postings will be scarce over the next few days, as I hit South Florida for some R&R with the fam.]
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