The Times of London floated the idea that Sanofi-Aventis (SNY) might have lost interest in buying troubled drug company Bristol-Myers Squibb (BMY). Wall St. has to wonder where the rumor came from.
BMY stock is up sharply since the rumor emerged. But, it dropped 5% on the report that SNY might not be interested. There was some speculation that Pfizer (PFE) might be a bidder and that Sanofi was still looking at a deal.
However the rumor got out, if effectively cut the cost of the acquisition. There are still legal issues with the BMY drug Plavix, but if those go the company’s way, the cost of buying the company could pop up again.
No ordinary leak.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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