Elliott Management to block McKesson's takeover bid for Celesio

LONDON — The hedge fund Elliott Management will attempt to block McKesson Corporation’s offer to acquire the German pharmaceutical wholesaler Celesio because it “substantially undervalues” the company, according to a report in the New York Times published Tuesday. 

Elliott has a greater-than 25% share of Celesio and will decline to tender its shares, according to the report. 

McKesson last week launched a voluntary public takeover offer for the outstanding shares of Celesio through its indirect, wholly-owned subsidiary Dragonfly. Celesio shareholders can accept the takeover offer and tender their shares in Celesio at the offer price of €23 per share ($31.29 per share). That acceptance period ends Jan. 9.