Elan Corp ($7.78, +$0.80, +11.46%) shares jumped after news over the weekend that the Ireland-based pharmaceuticals company is in advanced talks to sell a minority stake to Bristol-Myers Squibb (BMY, $19.89, -$0.03, -0.15%). A trader noted chatter that this could lead eventually to a full takeover. Elan announced in January a strategic review, suggesting a sale could be in the cards.
Source: The Wall Street Journal (1 hour ago)
WSJ would not publish this info if nothing serious was pending. Something positive is going to happen any day now.
WSJ also recently reported (also unconfirmed) that IBM was buying Sun Micro and even quoted the pps. Ended up IBM did not buy. JAVA pps went on a roller-coaster ride until Cisco finally came out of nowhere to save stockholders after IBM said 'no at any price'. Weird and wacky stuff can happen and the WSJ doesn't have a lock on the truth. Not saying it won't happen, but it's certainly not a sure thing. BMY's comment to UBS that they are not in negotiations to buy a stake is troublesome and seems as much or more substantiated than an anonymous comment to a WSJ reporter. This is what's holding it down.
No, I don't have a long or short position, just paying attention. I used to be long but cut out a couple months back but still keep an eye on ELN.
Bristol-Myers Squibb (BMY: 19.95*, +0.03, +0.15%) is considering taking a minority stake in Elan, the Irish drugmaker that specializes in neurodegenerative diseases, an area of interest for Bristol, Reuters reported. Elan is also holding talks with a second unidentified company.