We’ve got a Merger Monday spotlight on Bristol-Myers Squibb (BMY) – Get Report after the company agreed to buy MyoKardia (MYOK) – Get Report in a $13.1 billion deal.
The deal is sending shares of MyoKardia up about 58% on the day. The rally leaves shares near $220, just shy of the $225 takeout price.
The all-cash deal is expected to close in the fourth quarter of 2020 and will help Bristol-Myers strengthen its cardiovascular portfolio.
However, Bristol-Myers’ reaction has been somewhat neutral, with the stock up just 0.4% on the day. While the acquisition will strengthen its cardiovascular offerings, it’s not expected to be accretive until 2023.
That’s likely giving investors some pause with the stock, even if it’s good news over the long term. Let’s look at the chart to see what levels matter now.
Bristol-Myers Squibb is a holding in Jim Cramer’s Action