On CNBC’s Mad Dash, Jim Cramer discussed Zoetis, an animal health biotech, that is a “gem of a company” spun off by Pfizer. Even though the company seems to be doing everything right, Bill Ackman has taken an 8.2% stake in the company and is pushing for it to be sold to Valeant. This is a similar case to Ackman’s long-standing campaign to have Valeant take over Allergan in a hostile takeover bid.
Jim Cramer has said many times that activist investors should go after weak companies with challenged management and turn them around rather than trying to shake up a company is performing well. “I don’t know what more they can do, ” Cramer spoke of Zoetis’ management. At $44, Zoetis is likely to go higher on this takeover talk, but he doesn’t sound too enthuses about Ackman’s tactics.
