Morgan Stanley Dropped by Crucell as Wyeth Talks End (Update2)
By Joram Kanner
Jan. 29 (Bloomberg) -- Crucell NV dropped Morgan Stanley as a merger adviser after Wyeth abandoned talks to buy the Dutch vaccine company in favor of a $68 billion takeover by Pfizer Inc., a transaction the Wall Street firm was also involved in.
“Morgan Stanley is currently not actively advising Crucell, as our discussions with Wyeth have come to an end,” said Oya Yavuz, a spokeswoman for Crucell in Leiden. Michael Wang, a spokesman for Morgan Stanley in London, declined to comment.
Wyeth had planned to buy Crucell for $1.35 billion, according to a person familiar with the deal. The Madison, New Jersey-based drugmaker pulled out of talks after its takeover by Pfizer was announced on Jan. 26, causing the Dutch company’s shares to slump the most in almost eight years. Morgan Stanley was advising Wyeth at the same time it advised Crucell.
The situation highlights the struggle investment banks have juggling mandates and retaining clients as the credit crisis claims competitors. New York-based Morgan Stanley’s role counseling Wyeth on the Pfizer deal propelled the firm to No. 2 this year among merger advisers after Bank of America Corp., from sixth last year, according to data compiled by Bloomberg.
“On the one hand, banks are handling so many different things, it’s hard not to be on the other side sometimes,” said Nigel Nicholson, a professor of business leadership at the London Business School. “On the other hand, the client has to be aware and satisfied with that arrangement. When you’re doing deals there are real conflicts of interest and it’s buyer beware.”
Competitors Vanish
In 2008, Bear Stearns Cos. was bought by JPMorgan Chase & Co. in a deal arranged by the government, Lehman Brothers Holdings Inc. went bankrupt, Washington Mutual Inc. was seized and American International Group Inc. was taken over. Merrill Lynch & Co., the third-largest securities firm, was acquired by Bank of America this month.
Crucell’s Yavuz declined to say what investment bank the drugmaker will use as a merger adviser. The company may still be a target for Novartis AG of Switzerland and Sanofi-Aventis SA of France, which both have vaccine units that could benefit from Crucell’s products and research, according to analysts.
The Dutch drugmaker’s biggest products are vaccines for children and travelers. It is also developing others for HIV, rabies and Ebola. The company reported its first quarterly profit in November.
Crucell dropped 46 cents, or 3.2 percent, to 13.8 euros at the close of trading in Amsterdam.
- Morgan Stanley voor schut zetten is een beetje kinderachtig
- voorlopig geen merger, waarschijnlijk in de tweede helft van 2009 als nervositeit bij de grote farmabedrijven weg is.
- morgen alles verkopen (voor het weekend zal de koers niet veel zakken vanwege hoop op weekend-deals)
- maandag begint de daling