Elliott Threatens To Block $8.4B Celesio Takeover

Law360, New York (December 10, 2013, 11:07 AM EST) -- Activist hedge fund Elliott Management Corp. said Tuesday that it would use its sizable minority stake in Celesio AG to stymie a €6.1 billion ($8.4 billion) takeover bid lobbed at the German drug distributor by California-based peer McKesson Corp.

New York-based Elliott since late October has ratcheted up its holding to 25.16 percent, factoring in shares tied to the company's convertible bonds — enough to keep McKesson from getting necessary support from the holders of 75 percent of Celesio's shares.

The stock purchases started less than...
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