McKesson shares jump after deal report surfaces

Shares of McKesson Corp. jumped Tuesday after a published report said the prescription drug distributor was close to making a multi-billion dollar acquisition.

The Wall Street Journal reported that McKesson was in advanced negotiations to buy German rival Celesio AG for more than $5 billion. The report on the newspaper’s website cited “people familiar with the matter.”

A McKesson spokesman told The Associated Press in an email that his company does not comment on “market rumors or speculation.”

The Journal reported that if McKesson proceeds with a bid, it may announce it as early as this month. It said the company has gained access to the books of Celesio, one of Europe’s three largest pharmaceutical wholesale distributors.

But the paper also said a deal could still fall apart, with price and financing arrangements being sticking points.

Shares of San Francisco-based McKesson climbed 3.8 percent, or $4.91, to $134.54 in Tuesday afternoon trading, while the Standard &Poor’s 500 index fell nearly 1 percent. The company’s stock had already climbed 34 percent so far this year as of Monday.

McKesson shares have jumped several times in 2013, including a gain in July after it reported fiscal first-quarter earnings that beat expectations and raised both its quarterly dividend and net income forecast. McKesson also provides information technology services, and an analyst said after that earnings report that the company clearly was “executing well across multiple fronts.”

More in Herald Business Journal

Voters are on the sidelines as the port fills a vacant seat

Troy McClelland resigned from the Port of Everett commission too late for an election before 2019.

In space capsules today, little room but big improvement

Boeing and SpaceX are relying on a tried-and-true design as they each develop new spacecraft.

First Boeing KC-46 delivery to Air Force slides into 2018

Certification milestones have been missed, and problems have emerged in flight test, a source says.

Newest must-try eatery: 85°C Bakery Cafe in Lynnwood

The popular bakery, part of a Taiwan-based chain, is already drawing out-the-door crowds.

Snohomish County tax liens

Tax liens are gathered from online public records filed with the Snohomish… Continue reading

Trudeau: Canada could stop dealing with Boeing over dispute

Boeing had petitioned the U.S. to investigate government subsidies of Bombardier’s CSeries aircraft.

Toys ‘R’ Us files for bankruptcy but keeps stores open

Retailers of all kinds are struggling. Toys ‘R’ Us is among at least 18 other bankruptcies this year.

Marysville-Arlington fiber-optic link planned by Comcast

The high-speed internet line, to be ready next year, is seen as a boost for business development.

‘Cheese that was grass 24 hours ago’ wins a farm accolades

Ferndale Farmstead specializes in authentic Italian cheeses — made with with American milk.

Most Read