On Wednesday, McKesson initiated an offer to exchange $107.53 of Change Healthcare (NASDAQ:CHNG) shares for every $100 of McKesson (NYSE: MCK) shares tendered. There’s a 7.5% profit built into this transaction to entice shareholders to participate. Why? McKesson wants to monetize its Change Healthcare stake and repurchase its own stock with the proceeds. It’s hard to sell 176 million shares without affecting the market price, so McKesson opted for an exchange offer.
Odd-lot Opportunity In McKesson's Exchange Offer
Odd-lot Opportunity In McKesson's Exchange…
Odd-lot Opportunity In McKesson's Exchange Offer
On Wednesday, McKesson initiated an offer to exchange $107.53 of Change Healthcare (NASDAQ:CHNG) shares for every $100 of McKesson (NYSE: MCK) shares tendered. There’s a 7.5% profit built into this transaction to entice shareholders to participate. Why? McKesson wants to monetize its Change Healthcare stake and repurchase its own stock with the proceeds. It’s hard to sell 176 million shares without affecting the market price, so McKesson opted for an exchange offer.