McKesson seals deals to rescue Celesio acquisition

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Associated Press

Posted on January 23, 2014 at 3:01 PM

Updated Thursday, Jan 23 at 3:02 PM

SAN FRANCISCO (AP) — McKesson says it has acquired its rival German drug distributor Celesio through acquiring Celesio assets from other investors, rescuing a deal that appeared to have failed.

The move comes after McKesson last week failed to gain enough shareholder support for a bid of 23.5 euros per share to buy Celesio outright.

McKesson agreed to acquire Celesio holdings of Franz Haniel & Cie. GmbH for 23.5 euros per share. It also agreed with an affiliate of Elliott Management to buy Celesio convertible bonds. After those two agreements, McKesson has more than a 75 percent stake in Celesio.

The deals are expected to close within 10 business days.

Celesio could not immediately be reached for comment.

McKesson shares rose $4.63, or 2.7 percent, to $177 in after-hours trading after ending the day up 1.6 percent at $172.37.

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