Well, Valeant has apparently pushed forward with its $54 B tender offer for Allergan shareholders to consider. It consists of a reported $72 per Allergan share plus 0.83 shares of Valeant stock per share as well. This deal has alreay been rejected by Allergan management and they are imploring current Allergan shareholders to stand down and do nothing toward accepting this offer directly from Valeant. In the menatime, Bill "activist investor" Ackman in cahoots with Valeant CEO Pearson is pushing for a special board meeting and election where the dynamic duo hope to throw da bums out on the existing Allergan board and presumably replace them with friendlier "puppet" candidates. This action could occur as early as August if successful.
Not to be outdone, Allergan is said to be preparing an unwanted offer to buy Shire. For now it is good to be a shareholder of the latter as the rumors keep driving the stock price higher. Analysts scratch their heads a bit -- as this deal looks very similar to Pfizer's (till now) ill-fated attempt to bad AZ. Allergan does not seem to have that much in common with Shire except acquiring the latter is possible due to Shire's size, and Shire is located in Ireland giving Allergan a possible tax inversion windfall. Without the latter though, these analysts don't see this deal even being proposed let alone happening. The deal would also probably throw a monkey wrench into Valeant's plans above and that too would be a sving grace from Allergan's point of view.
Posted by Bruce Lehr June 18th 2014.