By Micah Maidenberg

Activist investor Starboard Value LP detailed its opposition to Bristol-Myers Squibb Co.'s proposed acquisition of Celgene Corp. on Thursday, describing the proposed takeover as poorly conceived and ill advised.

The Wall Street Journal first reported last week that Starboard and fifth-largest shareholder Dodge & Cox were unhappy with the deal. Bristol-Myers agreed to buy rival Celgene earlier this year in a deal valued at about $74 billion.

Starboard, which has proposed a slate to join the board of Bristol-Myers, said Thursday that the drugmaker's management and board have delivered years of weak performance and haven't "earned the right, in our view, to execute on a 'bet the company' acquisition."

"We believe the risks inherent in this acquisition paired with the long-term poor results at Bristol-Myers make it untenable to support such a transaction," the investor said in a Feb. 28 letter to Bristol-Myers shareholders.

A spokeswoman for Bristol-Myers didn't immediately have a comment.

Shares of Bristol-Myers rose 1.5% in Thursday morning trading, while Celgene shares dropped 8.7%.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

February 28, 2019 10:30 ET (15:30 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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