SAN FRANCISCO (AP) — McKesson says it failed to gain enough shareholder support for its recently raised bid to take over rival German drug distributor Celesio.
The San Francisco company's shares are falling in afternoon trading.
McKesson Corp. needed support from roughly three-fourths of Celesio's stockholders and bondholders. It says that it didn't complete that condition.
Last Thursday, McKesson had raised its offer to 23.5 euros for each share of Celesio. That equated to about $31.97 per share and was up from an offer of 23 euros that it made last month. The higher bid expired Thursday, which was the same deadline as the previous bid.
That earlier offer had drawn opposition from the hedge fund Elliot, a major Celesio stakeholder.
McKesson shares fell more than 5 percent to $166.06 in midafternoon trading.