McKesson/Celesio - Confusion on Elliot involvement overblown; ISI Group sees little to no impact to deal economics
ISI notes Celesio's stock price rose above €23 in today's trading, giving credence to the possibility that MCK would raise its offer price in response to a petition by Elliott. We believe that if Elliott does take action, the investor's argument will be over the high level of accretion and the positive MCK stock reaction, which argue for a higher value for Celesio shares. Ultimately this is major noise but it has ZERO impact on the financial merits of this deal and has not impacted other examples historically.