Mike, I concur with Myth's comments and also stocks trade at a discount in this type of CNTO situation due to the fact that the deal could end up falling apart. There is always a chance of cooked books, a big litigation suit popping up against CNTO, Meteors -g-
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CNTO shareholders still need to approve, which they should do.
From today's WSJ
The boards of the two companies met Monday and met again Tuesday night to approve the deal, people familiar with the discussions said. Under the terms of the agreement, announced Wednesday, J&J is paying about $61 in stock for each Centocor share.
The boards of Johnson & Johnson and Centocor have given approval to the merger. The agreement will require the approval of Centocor shareowners. Centocor will retain its name and management, and will become a unit within J&J.
Centocor closed at $49.50, down $2.875, in Nasdaq Stock Market trading Tuesday.
J&J, New Brunswick, N.J., and Centocor, Malvern, Pa. had been in talks in May, but negotiations ran into trouble when J&J and Centocor couldn't agree on key terms, including price, which is often the case in friendly merger negotiations. |
