See BBC message board for gossip on BBC/CAH merger, FTC approval.
BBC to be acquired at .775 CAH. BBC is 40, CAH is 70, creating merger price of 54. $14/sh says to me that FTC approval is unlikely.
Similar with MCK/AAS, although AAS may be small enough to not create antitrust problems, but with MCK at 52, AAS at 58, (merger price somewhere between 71 and 73) market is discounting $13/sh for FTC approval.
I looked into this as opportunity, but passed becaused it seems that 1) CAH/BBC will not go thru, and 2) would be hard for FTC to approve MCK/AAS when CAH/BBC denied.
Don't get me wrong; I hope it's approved since you're long the stock, and I'll cheer for anyone except for BBC (similar horror stories as MCK's previously posted). Good luck to you ! I'll be watching deal too, but from sidelines...
I know nothing about the mergers of CAH and BBC - haven't had time to look up either one. I just sent in my approval of AAS's merger with both AAS and MCK shareholders' meetings Feb. 9th. Also bought more AAS. If approved, I had assumed each share of AAS would be worth .71 x 99.81, or 70.87, (as of Sept.22) of MCK's stock. But now I assume it may be 1.42 x the closing price of MCK on Feb. 7th (Friday). Am I right or wrong? I think I'm wrong, but hope not as MCK is now higher (split x 2) and could be even higher by Feb. 7th.
I should expect we would be hearing very soon about these mergers, at least about the proposed merger between CAH and BBC because that merger was announced one month before AAS and MCK and I think if FTC rules in favor of that one the other will surely follow.
I read a story I think it was Wall Street Journal a couple of months ago saying it would be early Spring 98 for the merger. I bought Amerisource shortly after it came on the market a few years back. I was pleased that it acquired Walker Drug Co out of Birmingham, Al awhile back. I was hoping that Amerisource would have at least had a stock split prior to being acquired by Mckesson. I own 200 shares of amerisource. Ameriource must be careful because McKesson destroyed Foxmyer (AAV) Stole away key excutives; McKesson pretended to want to buy Foxmyer looked at their books and helped it self their mgt personnel & etc.
Your message is very interesting. MCK has been going up and down like a yo-yo, AAS likewise, but never anywhere near its proposed value of .71 x 99.81 = 70.86 (today's closing AAS 53 15/16, and MCK already below at 98 3/4). I don't understand the variance unless like you say, WATCH OUT, it may never go thru. Any other response from anyone? If any reliance that it will go thru, AAS is an excellent buy - unless there is no compensation should MCK fall way below the 99.81. They are also scheduled for a 2:1 stock split 1/2/98.