By Maria Armental

Starboard Value LP is throttling down its campaign against Bristol-Myers Squibb Co.'s acquisition of Celgene Corp. after two influential proxy advisory firms recommended shareholders approve the proposed deal.

The activist investor said Friday it wouldn't actively solicit votes against the transaction ahead of a special shareholder meeting on April 12. However, it said it will still vote against the transaction, saying the deal is too risky, and urged others to follow suit.

The investment firm said it "recognizes that "despite the substantial swell of support against this transaction, it is extremely difficult for shareholders to prevail without a supportive recommendation from ISS and Glass Lewis to vote against the transaction."

Institutional Shareholder Services and Glass, Lewis & Co. published reports Friday advising investors back the deal. ISS said in its report the deal appears to have strategic merit because it replenishes Bristol-Myers's late-stage pipeline and diversifies its offerings.

Bristol-Myers reached a roughly $74 billion deal to buy Celgene in January.

Starboard had nominated five potential directors, including its chief executive, Jeffrey Smith, to join the Bristol-Myers board. It wasn't immediately clear whether the nominations stand.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

March 29, 2019 13:39 ET (17:39 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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