Celgene Holders May See Tax Benefit From Bristol-Myers Deal (1)

Celgene Corp. shareholders, who have seen the value of their investment decline in recent months, will be able to recoup some of that value through tax savings after Bristol-Myers Squibb Co. announced it would purchase the maker of cancer-fighting drugs for $74 billion.

Pharmaceutical giant Bristol-Myers announced on Jan. 3 that it would buy 69 percent of Celgene with a combination of cash, stock, and contingent value rights that make it the biggest pharmaceutical deal to date. Celgene shareholders would own the rest.

The pending deal is structured to benefit Celgene shareholders because the mix of equity ...