Labcorp In Talks To Merge Some Covance Assets With Syneos: Bloomberg

Labcorp In Talks To Merge Some Covance Assets With Syneos: Bloomberg
  • Laboratory Corp of America Holdings LH is in talks to combine some of its assets with Syneos Health Inc SYNHreports Bloomberg citing people with knowledge of the matter. 
  • The companies are discussing a deal in which part of LabCorp's Covance clinical research division would merge with Syneos.
  • The sources said that the companies are discussing structuring the deal as a so-called Reverse Morris Trust, which provides tax benefits by spinning off an asset before it's combined. 
  • Bloomberg also reported that Syneos's management would run the merged company, although its leadership would include executives from Covance, which has changed its name to Labcorp Drug Development.
  • Price Action: LH shares are up 3.23% at $296.15, SYNH shares are down 0.01% at $102.59 during the premarket session on the last check Friday.

Posted In: BriefsHealth CareHealth Care ServicesM&ANewsHealth CareRumorsMoversTrading IdeasGeneral