Merck Sees Only Tepid Response -- To Its Euro Notes Tender Offer -- A Light Response

The results were in -- as of last night. And they are decidedly. . . anemic:

				Principal		Principal
		CUSIP		Amount		Amount		Aggregate Total
Title of Notes		Number		Outstanding		Tendered and Accepted		Consideration(1)
6.30% Debentures due 2026		589331AC1		$250,000,000		$96,923,000		$129,669,405
6.40% Debentures due 2028		589331AD9		$500,000,000		$173,493,000		$236,395,008
5.95% Debentures due 2028		589331AE7		$500,000,000		$142,255,000		$189,907,185
6.50% Senior Notes due 2033		806605AG6		$1,150,000,000		$432,389,000		$616,004,910
5.75% Notes due 2036		589331AM9		$500,000,000		$127,870,000		$171,679,328
5.76% Notes due 2037		58933NAL3		$112,947,000		$33,815,000		$44,687,537
6.55% Senior Notes due 2037		806605AH4		$1,000,000,000		$475,948,000		$678,701,055
5.85% Notes due 2039		589331AQ0		$750,000,000		$331,093,000		$445,642,073

This shows us that investors prefer the fatter coupons on the old notes, compared to the new ones. Citi and JP Morgan likely advised Merck of this probability. So, Merck may now run a mandatory redemption. We shall see.

Honestly, I haven't bothered to check the SEC filings -- to read and see whether/if the Noteholders may be forced into a redemption. But that would make sense, if Merck has that right. We will watch for it.

Even so, overall, none of this is material to Mothership Merck. Oh, and also, speaking of immaterialities -- it seems an ex-Merck financial analyst was inside-tipping a fellow college alum from Rutgers, on the Idenix acquisition. Or so sayeth the SEC. Immaterial.Onward!