Cardinal Health Inc.’s $1 billion takeout of Syncor International Corp. hangs by a thread after revelations that Syncor Chairman Monty Fu may have offered bribes overseas to secure business. And as the arbitrage community scrambled for any insights into the depth of the problem, a likely outcome loomed, said various Street sources: Cardinal would set its M&A sights elsewhere. The allegations, now under investigation by the Department of Justice and the Securities and Exchange Commission, also include Fu’s brother Moses Fu, director of Syncor’s Asian operations. The news blew out the 11-cent spread on the transaction to $15.55, before Syncor stock closed at $27.40 per share, 24% lower than the prior day’s close.
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