Cerberus Biotech Deal Attracts Traders

Chidem Kurdas

Stephen Feinberg  must be glad that he held on to a big stake in Talecris Biotherapeutics after the 2009 initial public offering. Mr. Feinberg’s Cerberus Capital owned Talecris  in partnership with another firm. 

Last year, a deep-pocketed suitor appeared. Grifols, a Spanish company with worldwide businesses in pharmaceuticals and other medical areas, is to acquire Talecris.

This month the companies announced that they signed a consent agreement with the US Federal Trade Commission — Grifols will sell certain operations to avoid antitrust issues. TheUScould still say no to the acquisition, but that’s not expected.

Mr. Feinberg owns around 48% of Talecris’ shares outstanding. Just a couple of months ago this stake was valued at $1.2 billion, which meant a big gain on his investment from years ago.

But with merger arbitrageurs buying Talecris ahead of the deal’s closing, the shares were worth about $1.8 billion at market price as of last week. Does this mean an even sweeter profit for Mr. Feinberg? Maybe — it depends on the agreement with Grifols.

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2 Responses to “Cerberus Biotech Deal Attracts Traders”

  1. Cerberus Chief Gets Grifols Stock « HedgeFundSmarts Says:

    […] Cerberus received in the deal in addition to the stock. Mr. Feinberg appears to have done well in the transaction, which closed a few weeks […]

  2. Pharma Trades Not Deterred by Uncertainty « HedgeFundSmarts Says:

    […] M&A-related investments take several years. Thus Cerberus bought Talecris Biotherapeutics in 2009 and held on until Grifols, a Spanish company, acquired it last year.   As part of the deal, Cerberus got […]

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