Bristol-Myers Agrees To Expensive Buyout Of Amylin: Stay Away
Now after the close on Friday, Bristol-Myers announced the agreement to purchase Amylin Pharmaceuticals (AMLN) along with AstraZeneca (AZN) for $5.3B. This deal surely suggests that the company won't buyback as much stock as expected at least in the near term.
The timing of the two announcements has to be in question. Why increase a buyback with the stock hitting a ten year high? Not to mention right before announcing a cash intensive acquisition that will not only strain any cash that could be used for a buyback, but also that is dilutive making the stock less attractive. Investors buying last week have to feel duped.
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