Bristol-Myers tells opponents Celgene deal is 'best path'

(Reuters) - Bristol-Myers Squibb urged shareholders on Wednesday to support its planned $74 billion takeover of Celgene Corp, as it faces opposition from two large investors to what could be the largest pharmaceutical deal ever.

The drugmaker said buying Celgene was the “best path forward” for its shareholders, a message that is in line with its recent statements even as Starboard Value LP and Wellington Management oppose the deal.

Starboard, an activist investor with a track record of opposing deals it is unhappy with, maintained its view on Wednesday that the merger was “ill-advised” and recommended that fellow Bristol-Myers shareholders vote against it at a shareholder meeting slated for April 12.

The New York-based hedge fund has also presented a slate of five nominees to Bristol-Myers’ board, including Starboard Chief Executive Jeffrey Smith.

Wellington Management, one of Bristol Myers’ top shareholders with 8 percent of shares, has said it finds the deal to be too risky and expensive. The Boston-based firm said on Wednesday it had no further comment.

In a presentation to investors, Bristol-Myers highlighted that a buyout of Celgene would provide “significant advantages” with less risk compared with other options like pursuing a series of small transactions.

As its most important cancer immunotherapy Opdivo faces competition from Merck & Co’s Keytruda, Bristol-Myers is betting on Celgene to strengthen its position in the lucrative oncology market.

It also stressed that the deal was expected to increase earnings by over 40 percent in the first full year when it closes.

Reporting by Tamara Mathias in Bengaluru; Editing by Shinjini Ganguli and Sai Sachin Ravikumar