Through The Fly's Eyes: Deal Speculation
Schering-Plough Eyes Bristol-Myers Squibb
Speculation has been running wild since Fred Hassan, Schering (SGP) Plough's CEO, took charge of the once-troubled pharma company. Investors assumed he would fix it up and then put it up for sale.
However, there is speculation this morning in a New Jersey newspaper that Schering might be doing the buying, not the selling.
Bristol-Myers Squibb (BMY) has been one big basket case of a company. Once again, Bristol's top management is failing to turn this company around. Schering's Hassan is in the middle of his second successful pharma turnaround.
If Schering does buy Bristol there most likely will not be much of a premium paid, but you would want to own the combined company. Bristol has been a disaster of a company that needs new leadership. Cost savings alone could lead to investors making some big money.