In a research note this morning, Merrill Lynch’s David Risinger expects that kind of premium from Sanofi-Aventis. Moreover, he says a deal is more likely to happen than not, given reports investment bankers have been hired by both drugmakers.

And of course, Risinger is right to point out that such headlines will only make it harder for Bristol-Myers to attract a permanent ceo, despite recent remarks from interim ceo Jim Cornelius that the board is trying really hard to find someone.

Why? “A CEO hire would want clarity on Bristol’s strategic outlook, and we think Bristol’s board would be hard pressed to guarantee a large financial package to a new hire in the event of a take-over. This is because of aggressive scrutiny of executive compensation,” he writes.

One further thing: Risinger postulates that Sanofi would cut 15 percent of SG&A costs and 20 percent of R&D in any merger. Expect a lot of resumes to be emanating from Bridgewater and Princeton, N.J., where the drugmakers each have facilities.

[tags]Bristol-Myers Squibb, Mergers, Merrill Lynch, Sanofi-Aventis[/tags]