BMS Shareholders Greenlight Celgene Deal

Shareholders of Bristol Myers Squibb (BMS) have approved the company’s $74 billion acquisition of Celgene. At the special meeting on Apr. 12, altogether 75% of the shareholders voted in favor of the deal, 24% were against it and less than 1% abstained. The transaction is planned to complete in the third quarter.

The combined company will have nearly $38 billion in annual sales and command a leading position in the global market for cancer drugs, which according to estimates is worth around $123 billion.

Shortly before the vote, activist investor Starboard Value withdrew its plans to torpedo the deal after two independent proxy advisory firms recommended a thumbs-up. The investor said it would stop soliciting the shareholders to vote against it but it exercise its right to do so.

In February Starboard announced it had acquired an interest of 1 million shares of Bristol-Myers Squibb with the intention of breaking up the merger plans.