IMS Health in sale talks
IMS Health (RX) is in sale talks with several private equity firms, as reported by the Wall Street Journal. The offer price seems to be in the $17 range. That's considerably below where I recommended the stock (around $23, where I thought it was a good deal) but considerably above where I actually bought it ($12 and change - thought it was a great deal).
IMS isn't in a particularly cyclical business. Its database of pharma sales info would be impossible to replicate. The firm provides a very valuable service to pharma companies. I certainly imagine the company is attractive to the private equity folks. In retrospect, I wouldn't have paid $23, given the decline in demand for IMS' solutions. I do expect that to be a short-term problem, though. I also believe that the offer reportedly on the table undervalues the firm.