Friday, July 22, 2005

Hit #55

Express Scripts announced Friday after market-close that it is buying Priority Healthcare (PHCC) for $1.3 billion in cash. This offer, of $28/share is a small premium over the recent close, but represents a 17% premium over my average cost of $23.89/share over a year ago.

While I am content with the premium, there is something odd about this deal. Most announcements on Friday after close are not good ones. The premium paid was also extremely low when compared with similar deals in this sector.

Previous hit - Guilford Pharma (#54)


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