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)