Merck Goes for Pfizer

I knew the drug stocks were cheap. The German Merck is offeting $18 billion for the German Schering. FYI: This isn’t the U.S. Merck (MRK), or the U.S. Schering Plough (SGP).
I hope this signals a bottom for drug stocks:

Merck said it expected annual synergies of 500 million euros, to be fully reached by 2009. It said the deal would have a positive impact on adjusted earnings per share (EPS), increasing its 2005 figures by more than 10 percent, even without synergies.
Merck said the 14.6-billion-euro payment would be financed by a combination of existing funds, debt and equity.
The company will initially finance the takeover through existing cash and bridge financing from Bear Stearns, Deutsche Bank and Goldman Sachs.

Posted by Eddy Elfenbein on March 13th, 2006 at 11:06 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.