When we last checked in on Dan Loeb’s Third Point it was mid 2017 and the fund was cruising while also singing the praises of Baxter International (BAX). Unfortunately, 2018 was a rough year for the firm and performance, at -11.3%, lagged the overall S&P 500. Market Folly shares the fund’s recent Q4 mea culpa letter which offers… Read More »
Let’s kickoff the week with a few links: Yet Another Value Blog takes a look at the Liberty Braves Group (BATRA/BATRK) and sees some nice upside potential. Apparently, he also notes, so does Gabelli. It’s a good piece and among other things, includes a long section (which I tend to agree with) on why sports teams are undervalued. In… Read More »
Shire Pharmaceuticals (SHPG) announced last week that it will be “assessing strategic options” for its Neuroscience franchise. The move would allow the company to focus its efforts on its rare diseases division. From the company’s Q2 statement: With the acquisition and integration of Baxalta, Shire has solidified its leadership position in rare diseases with an unparalleled inline portfolio, innovative… Read More »
Just months after being spun off from Baxter International(BAX), Baxalta found itself the target of an intense pursuit by Shire Pharmaceuticals(SHPG). Baxalta resisted, but, ultimately agreed to a deal which closed earlier this year. Barron’s sees good things ahead for the combined company. In an article this weekend, the venerable publication points out that merely by achieving a… Read More »
Who says persistence doesn’t pay off? Months after having a buyout offer rejected and weeks after reports of its continued interest in a deal, Shire (SHPG) has reportedly gotten recent Baxter International (BAX) spinoff Baxalta (BXLT) to sit down at the table for a little M&A pow-wow. Apparently the two are making progress on a deal which would include… Read More »
Some people just won’t take no for an answer. According to Reuters, Shire (SHPG) is getting ready to unveil a higher bid for recent spinoff Baxalta (BXLT), after its unsolicited $30b offer was rejected earlier this year. At the time of the initial offer, the orphan disease focused company had been independent for about roughly two minutes and argued… Read More »
A few short hits to kick off the week: Marketfolly posts a copy of Third Point Capital’s Q3 newsletter in which chief Dan Loeb talks about the firm’s position in Baxter International (BAX). Mr. Loeb is a big fan of new CEO Jose ‘Joe’ Almeida which shouldn’t come as much of a surprise given that the fund’s board representative helped… Read More »
A few links for a rain soaked Friday: Baxalta (BXLT) is getting a lot of attention in the press and this blog due to Shire’s(SHPG) hostile approach, but things haven’t been so quiet at parent Baxter International (BAX) either. Shortly after the spinoff, Dan Loeb’s Third Point unveiled a massive stake (close to 10%) in the healthcare product company. While… Read More »
After ceasing buyout discussions with Ariad Pharmaceuticals (ARIA) due to disagreements over price, Baxalta (BXLT) is apparently still in play. The WSJ recently reported that Shire (SHPG) is still trying to consummate a deal with the drug company after having its hostile, all-stock offer rejected earlier this summer. As a quick refresher, Shire surprisingly unveiled an offer of 0.1687 ADRs… Read More »
How quickly things change. Last week, word was Baxter (BAX) spinoff Baxalta (BXLT) was in talks to acquire oncology focused Ariad Pharmaceuticals (ARIA). The rumored $2b price tag sent Ariad shares soaring, but alas, today shares are crashing on word the deal has been called off. According to Bloomberg, there were a couple of pretty big issues that emerged:… Read More »
Just two months after its spinoff from Baxter International(BAX), as it continues to reject acquisition interest from Shire(SHPG), Baxalta(BXLT) is in talks to acquire Ariad Pharmaceuticals(ARIA). Ariad jumped 42% on the news last Friday, valuing the oncology company at nearly $2 billion. What is driving this potential acquisition? Is it the “Promise of the Baxalta Spark“? Perhaps it’s… Read More »
Yesterday morning we noted Shire’s (SHPG) unsolicited all-stock offer for recent Baxter (BAX) spinoff Baxalta (BXLT). The proposal offered to exchange any Baxalta shares for 0.1687 Shire ADRs, implying a value of $45.23 per Baxalta share. Of course, Shire promptly slumped over 5% so the effective price went down somewhat. The company responded later in the afternoon with a press release… Read More »
The Summer of Spin kicked off a little over one month ago, but already one of the spinoffs might be acquired. Shire(SHPG) unveiled an offer to acquire last month’s Baxter International (BAX) spinoff, Baxalta(BXLT). According to the release, Shire contacted Baxalta in early July- immediately after the spinoff, met briefly on July 10, but Baxalta has not seriously considered… Read More »
Amidst this great Summer Of Spin, what are the best prospects? According to Forbes’ Antoine Gara, who has also noted the flurry of spinoffs: PayPal and Baxalta(BXLT). About PayPal: PayPal is a leader in online payments, with high margins and strong revenue growth. It could prove valuable to tech giants like Google, Apple, Microsoftand Facebook, who are all toying… Read More »
What a week for spinoffs. Truly historic. Beginning on Monday with TEGNA (TGNA)/Gannett (GCI), the ‘Summer of Spin’ crescendoed yesterday with the completion of six more spins: DuPont (DD) spun off its performance chemicals unit (including Teflon) into Chemours (CC). The new company told investors it plans on paying out a stable dividend, which is somewhat unusual for such… Read More »