FRANKFURT Dec 10 Hedge fund Elliott
International is pushing U.S. drugs wholesale group McKesson
to hike its $8.3 billion offer for German peer Celesio
, a source close to the investor said.
McKesson's offer undervalues Celesio in Elliott's eyes, the
Elliott, run by U.S. investor Paul E. Singer, has spent
roughly 800 million euros building a stake of more than 20
percent in Celesio over recent weeks and is now in a position
where it can block the takeover.
McKesson has said its 23 euro ($31.55) per share takeover
offer is conditional upon it obtaining at least 75 percent of
Celesio's shares, including those from the convertible bonds.
One alternative to the McKesson deal would be to sell the
wholesale business to a strategic bidder and the pharmacy
business to a separate buyer, the source said.
Elliott declined to comment.