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Proxy advisor ISS backs Bristol takeover of Celgene

(Corrects misspelled word in 2nd paragraph)

NEW YORK, March 29 (Reuters) - Proxy advisory firm Institutional Shareholder Services on Friday recommended shareholders of drugmaker Bristol-Myers Squibb Co shareholders vote in favor of its proposed $74 billion takeover of rival Celgene Corp.

"The proposed transaction has sound strategic rationale and the valuation appears reasonable," ISS said in its report.

Bristol-Myers' second largest shareholder, Wellington Management, and activist investor Starboard Value LP have opposed the deal, calling it "poorly conceived and ill-advised." (Reporting by Svea Herbst, writing by Michael Erman Editing by Chizu Nomiyama)