McKesson: Elliott's game of chicken continues... who blinks first? - ISI Group
ISI Group notes, Elliott Associates (owns or has an interest economically equivalent to over 25% of Celesio) announced an update on its view of Celesio, including an irrevocable binding commitment to reject McKesson's current tender offer for Celesio. Elliott reiterated that it will not accept MCK's tender offer unless the terms of the offer are improved. They still cannot foresee Elliott's true desire or ability to successfully create value in Celesio's business absent a relationship with McKesson, and see a break-up scenario for Celesio as significantly more value destructive for Celesio shareholders, including Elliott, than it is for MCK shareholders. continue to remain buyers of MCK on any weakness and would add aggressively if the shares were to fall below the $150 level in the event of a deal break.