Gilead $140 Billion Spending Power Could Allow Bristol-Myers Buy
2015-08-24 14:36:57.649 GMT
BI BIOT GLOB SBKEYS
The largest M&A target for Gilead suggested in a recent BI survey
was Bristol-Myers Squibb, which is within reach. Gilead may be
able to push for a 4x debt-to-Ebitda ratio to borrow another $72
billion. Assuming cash funding of 50%, this gives Gilead $140
billion in spending power, making Bristol-Myers's $100 billion
enterprise value an easy reach, even with a 30% premium.
Bristol-Myers's 33x forward P/E may mean such a premium is
unnecessary. The question is whether Gilead has an appetite for
such a deal.
|0|0|567848|234538944|MMDL 235295986|MMDL 235295986|
This research note has been published by Bloomberg Intelligence.
For more information, see BI <GO>
-0- Aug/24/2015 14:36 GMT
2015-08-24 14:36:57.649 GMT
BI BIOT GLOB SBKEYS
The largest M&A target for Gilead suggested in a recent BI survey
was Bristol-Myers Squibb, which is within reach. Gilead may be
able to push for a 4x debt-to-Ebitda ratio to borrow another $72
billion. Assuming cash funding of 50%, this gives Gilead $140
billion in spending power, making Bristol-Myers's $100 billion
enterprise value an easy reach, even with a 30% premium.
Bristol-Myers's 33x forward P/E may mean such a premium is
unnecessary. The question is whether Gilead has an appetite for
such a deal.
|0|0|567848|234538944|MMDL 235295986|MMDL 235295986|
This research note has been published by Bloomberg Intelligence.
For more information, see BI <GO>
-0- Aug/24/2015 14:36 GMT