Thursday, October 15, 2009

Pfizer/Wyeth Close Deal...Should I keep Pfizer Shares?

Pfizer completed its $68 billion dollar acquisition of Wyeth today. It amounts to $33/share in cash and 0.985 shares of PFE per share of WYE. As a holder of WYE for a couple of years, I have some mixed emotions about the deal. Wyeth is a good company and could continue to provide solid returns for years to come, so in that respect, I'm disappointed. So now I have to find another stock to provide those returns on the capital I had invested. Can Pfizer provide that? That is what I need to figure out at this point. I'm typically not a fan of companies that grow through massive acquisitions. I'd prefer companies to buy smaller companies that you may not have to pay full value for.

Wyeth shares cease trading at the bell today. I'll probably follow up on this more in the coming days/weeks. I won't immediately sell the PFE shares, but will do some more research to determine if there is a better option for this capital.

Disclosure: Long WYE

No comments: