Hedge fund Elliott pushes McKesson to hike Celesio offer -source


FRANKFURT, Dec 10 (Reuters) - Hedge fund ElliottInternational is pushing U.S. drugs wholesale group McKesson to hike its $8.3 billion offer for German peer Celesio, a source close to the investor said.

McKesson's offer undervalues Celesio in Elliott's eyes, theperson added.

Elliott, run by U.S. investor Paul E. Singer, has spentroughly 800 million euros building a stake of more than 20percent in Celesio over recent weeks and is now in a positionwhere it can block the takeover.

McKesson has said its 23 euro ($31.55) per share takeoveroffer is conditional upon it obtaining at least 75 percent ofCelesio's shares, including those from the convertible bonds.

One alternative to the McKesson deal would be to sell thewholesale business to a strategic bidder and the pharmacybusiness to a separate buyer, the source said.

Elliott declined to comment.

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