Tuesday, December 18, 2018

Tesaro Antitrust Filings

It looks like all of the required antitrust filings for GlaxoSmithKline’s acquisition of Tesaro has been completed:

1. US Antitrust (HSR) filed on 12/14/18 with an expiration of 12/31/18
2. German Antitrust (FCO) filed on 12/18/18 with an expiration of 1/18/19
3. Austrian Antitrust (FCA) filed on 12/18/18 with an expiration of 1/15/19

The tender offer expires on 1/14/19, which I see as a high likelihood of occurring. Could possibly see a tender extension based on the time frame in the completion of the FCO and FCA antitrust reviews. The spread has widened a bit, which is likely attributed to the overall market. Lots of other arb spreads have started widening a bit as players are in a risk off mentality.
 

10 Comments:

At December 19, 2018, Anonymous Anonymous said...

I know we are in a very risk off mode, what are your thoughts on MLNX?
Are we gonna be in a long downtrend with all the growth stocks underperforming?

 
At December 19, 2018, Blogger Money Turtle said...

MLNX: It feels like a deal is coming. Maybe worth a small wager.

I am very concerned with this market. You have slowing growth everywhere (i.e. semiconductors, transports, housing, etc...). Fed jacking up rates with the yield curve close to inverting. Definitely lots of bearish signs out there. Just be vigilant to see which stock can hold up in this decline. Those will be the winners in the next bull market.

 
At December 20, 2018, Blogger lamano said...

On Tesaro - Seems to me like volatility is driving the spread here.

 
At December 20, 2018, Blogger Money Turtle said...

TSRO: There was / is a lot of hot money in this one. The recent run up in speculation that there were other bidders didn’t make any sense to me. Company stated in their filings that they don’t anticipate any antitrust issues: “we do not expect any regulatory authority, state or private party to take legal action under the antitrust laws…”. Antitrust should not be an issue and GlaxoSmithKline is good with the cash. This should be smooth sailing, but need to keep an eye out for any potential material adverse event. Just counting down the days…

 
At December 20, 2018, Anonymous Anonymous said...

market is down huge in a very short time, not sure if it’s start of bear market or just a correction.
Hopefully we can normalize around earnings season.

 
At December 20, 2018, Blogger Money Turtle said...

I have no idea if this is a correction or start of a bear. As the old saying goes: "Don't fight the fed...". Probably going to see some more downside.

 
At December 21, 2018, Anonymous Anonymous said...

Hopefully we have a 1000 point short covering rally soon. This is crazy selling daily in pretty much every stock.

 
At December 21, 2018, Blogger Money Turtle said...

We'll rally at some point, but it's going to be one of those sell into the rally.

 
At December 28, 2018, Anonymous Anonymous said...

TSRO: halfway through and options still bid up. Hopefully spread narrows after HSR approval jan 1

 
At December 28, 2018, Blogger Money Turtle said...

TSRO: Need HSR approval for the option premium to go down.

 

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