Use information in the attached letter from Starboard Value, a major shareholder, Bristol Myers Squibb press releases (see the links below) and additional sources as needed to complete the assignment.
Answer questions from the lecture in the Powerpoint.
- Identify and explain an alternative expansion mode that might be more viable.
- Starboard Value, a major institutional investor, objects to this deal. Identify and explain three key reasons why this investor objects to the deal.
- What type of corporate governance mechanism does the Starboard Value activism represent? Is Starboard’s opposition effective in this transaction? Explain why or why not.
- Will this deal create or destroy value? Explain your answer by identifying and discussing the benefits and the costs of this type of diversification. Do synergies (i.e., 2 + 2 > 4) truly exist between Bristol Myers Squibb and Celgene? Explain your answer by identifying parts of the value chain that are shared (or distinctly separate) between the two firms.
(no more than 3 pages)
(be very clear and detailed)
EXPERT SOLUTION ANSWER