Hidden, "in plain view", as it were -- in today's SEC Form 8-K on the facilities closings is a piece of news that may cause Merck to open off, tomorrow, on the NYSE.
Most recently, in its Barclay's presentation in March 2010, Whitehouse Station projected annual incremental savings from the merger of $3.5 billion, annually in 2012 and beyond.
Today, that figure was revised downward, to between $2.7 and $3.1 billion. That is potentially an additional $750 million of incremental expense burden, every year.
[TODAY:] . . . .The Company expects the first and second phases of the Merger Restructuring Program to result in annual savings in 2012 of approximately $2.7 billion to $3.1 billion. . . .
March 24, 2010: Substantial cost synergies – incremental $3.5 billion cost synergies in 2012. . . .
Is $750 million, annually, in incremental expense burden in 2012 and beyond, enough to dip the stock in the morning? [It had been trading off, after-hours on the NASDAQ, down $0.43 -- on pretty strong volume. It recovered, to settle unchanged, at the end of tonight's NASDAQ session.]
We'll see.
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