Sunday, 28 December 2014
Last updated 6 hours ago
Jun 18 2014 | 3:01pm ET
If Allergan Inc. won’t negotiate with Valeant Pharmaceuticals International, perhaps its investors will.
Valeant yesterday said it would launch a hostile tender offer for the Botox-maker, bringing its roughly $53 billion offer directly to Allergan shareholders. The move follows Allergan’s rejection of the deal, as well as its refusal to sit down with Valeant in an effort to hammer out a deal.
Allergan today urged its investors to follow its lead and take no action on Valeant’s offer, which requires a majority of investors to tender their shares and for Valeant to discard its poison pill.
Valeant is working with Pershing Square Capital Management on its offer. Pershing Square owns about 10% of Valeant. The two are also working with Morgan Stanley—which was embarrassed earlier this week by Allergan’s release of e-mails between Morgan Stanley bankers calling Valeant “a house of cards.”
Allergan has said that Valeant’s business model is unsustainable and cited its aggressive acquisition policy as one reason for rejecting its approach. The Morgan Stanley bankers appear to agree, with the bank’s mergers and acquisitions chief, Robert Kindler, writing that Allergan “is not being nearly aggressive enough in going after the business model and currency.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.