Writing for Barron's, Ben Levisohn reports that Credit Suisse's HOLT team is bullish on the upside to Pfizer (PFE +0.5%) if it pulls the trigger and acquires Bristol-Myers Squibb (BMY +0.5%).
In note to investors released yesterday, analyst Vamil Divan says the marriage would goose Pfizer's return on capital assuming industry average synergies for this type of transaction. An all-cash deal, assuming a 25% premium, could extract synergies of 30% of BMY's operating expenses and lead to $5B ($0.80/share) in value creation.
