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Bristol-Myers to acquire Celgene in cash-and-stock deal with equity value of about $74 billion

Ciara Linnane

Bristol Myers-Squibb Co. and Celgene Corp. said Thursday they have agreed to merge in a deal in which Bristol-Myers will acquire Celgene for cash and stock with an equity value of about $74 billion. Under the terms of the deal, Celgene shareholders will receive 1.0 Bristol-Myers share and $50 in cash for each share of Celgene. They will also receive one tradeable Contingent Value Right for each share owned, which will entitle them to a payment for the achievement of certain future regulatory milestones. Based on Bristol-Myers closing price on Jan. 2, the deal is worth $102.43 per Celgene share and one CVR. Bristol-Myers shareholders will own about 69% of the combined company when the deal closes, which is expected in the third quarter of 2019. Bristol-Myers is expecting to achieve run-rate cost synergies of about $2.5 billion by 2022. The deal is expected to immediately boost per-share earnings. Celgene shares surged 33% in premarket trade, while Bristol-Myers shares fell 10.3%. S&P 500 futures were down 42 points.