Merck’s $11 Billion Deal for Acceleron Draws Pension Fund Suit

Nov. 22, 2021, 4:42 PM

A Teamsters pension fund filed suit in Delaware against Acceleron Pharma Inc.—which Merck Sharp & Dohme Corp. acquired in an $11 billion transaction that closed Monday—over claims that the sale price was weighed down by conflicts of interest.

The lawsuit, which doesn’t target Merck, accuses Acceleron’s leaders of running a deal process that was “flawed in multiple respects"—by failing to solicit competing bids and ignoring options besides a sale of the whole company—because of “considerations other than maximization of value.”

The board also justified the $180-per-share price with “flawed financial projections” that were “manipulated” by management and evaluated by advisers ...

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