Morgan Stanley Ponders How Potential Danone Acquisition Could Affect Hospira

In a report published Monday, Morgan Stanley analyst David R. Lewis reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “Potential acquisition of Danone's medical nutritional business may provide strategic flexibility but lower tax rates and access to OUS cash via inversion is the likely driver. Our first look has ~20% accretion, more modest than some inversion deals of late and returns of 7%, likely below HSP's WACC.” Hospira closed on Friday at $51.72.