"Do We See a Pattern Forming, Here?" FMR Cut Its Schering-Plough Stake By Over 45 Percent

First it was Wellington, the 800-pound gorilla in Schering-Plough shares, announcing last Wednesday that it had cut its holdings in half -- shedding $2.5 billion worth. Now, over the weekend, FMR, LLC -- the SEC-reporting-parent-entity of the Fidelity group of institutional investment vehicles, disclosed that it too, had vastly cut its Schering-Plough holdings, decreasing 45.2 percent, as of July 31, 2009 (selling off some 23,630,274 shares, or close to $500 million, compared to March 31, 2009). Interestingly, FMR also cut its Merck holdings about in half during the same period -- so it is lightening up on this part of the sector, more generally (On the other hand, Wellington added about 25.6 percent to its Merck holdings, in the period -- on a much smaller base).

Finally, recall that the Bill and Melinda Gates Foundation sold all of its 15 million Schering-Plough shares (and all of its Merck shares, to boot) during the same period. Yep -- I'd say that fairly establishes a pattern, here: the very biggest holders are reducing their exposure to this merger candidate. Here is this quarter v. last, in FMR's Schering-Plough holdings Schedule 13H tables:

                                                     VALUE    
NAME OF ISSUER               . -TITLE OF CLASS-     ($1000's)         SHARES     

AS OF JUNE 30, 2009

SCHERING PLOUGH CORP           COM                 $604,780    24,075,620 SH       
SCHERING PLOUGH CORP           COM                 $    270        10,740 SH       
SCHERING PLOUGH CORP           COM                 $100,013     3,981,407 SH       
SCHERING PLOUGH CORP           COM                 $ 34,364     1,367,980 SH       
SCHERING PLOUGH CORP           PFD CONV MAN07      $109,149       481,300 SH

TOTAL                                              $848,576       28,549,067  (45.2%)

AS OF MARCH 31, 2009

SCHERING PLOUGH CORP           COM                 $1,070,172  45,442,540 SH       
SCHERING PLOUGH CORP           COM                 $      270      11,457 SH       
SCHERING PLOUGH CORP           COM                 $   94,799   4,025,424 SH       
SCHERING PLOUGH CORP           COM                 $   52,013   2,208,620 SH       
SCHERING PLOUGH CORP           PFD CONV MAN07      $  101,034     481,300 SH       

TOTAL                                              $1,318,288      52,169,341