Bristol-Myers Squibb interests seesawed Monday after CNBC’s David Faber denounced an earlier report that activist hedge pay for Starboard Value has taken a stake in the company.
Shares of Bristol popped 2 percent early Monday after a Bloomberg cover said Starboard Value had taken a stake in the New York-based pharmaceutical giant.The size of the stake and plans that the activist hedge scratch might have for its investment couldn’t be immediately learned, according to Bloomberg.
Bristol’s shares turned negative after Faber, citing unnamed beginnings, said Starboard hasn’t contacted Bristol’s management yet.
Starboard Value and Bristol didn’t immediately respond to entreats for comment.
Last month, Bristol announced plans to acquire cancer drug maker Celgene in a cash and bloodline deal valued at $74 billion. Buying Celgene is seen as giving Bristol more cancer drugs at a on one occasion when its immuno-oncology portfolio struggles to keep up with rival Merck’s.
The initial news sent the cost to insure Bristol’s treaties to their highest point since May 2010. As the price of long-term Bristol bonds fell, the associated credit negligence swap jumped 66 percent, bringing the cost to insure $1 million of the company’s debt against default to $23,000, according to Reuters.
Allotments of Bristol are down by about 4 percent since the beginning of the year. The stock is down more than 20 percent beyond the past 12 months.