At least for us folks watching the Show!
Allergan is really starting to let the fur fly as it tries to ward off unwelcomed advances from Valeant. It first enacted a poison pill to make any further stock acquisition by Valeant ally and Allergan "renegade shareholder" Bill Ackman impossibly expensive. In fact, Ackman is trying to call a special meeting of Allergan shareholders right now, but first is trying to make sure that in and of itself won't trigger The Pill. Stay tuned for that one.
Allergan also went on the PR offensive by attacking Valeant's business model of buying companies, closing down their R&D or otherwise cutting staff, and then moving to the next victim. Allergan has termed this unsustainable and is using it as a prime reason for Allergan shareholders to reject Valeant's cash & stock offer. It has as much said that they should be very very careful of accepting the stock portion of the offer -- particularly if Valeant intends to destroy Allergan's future value by canning all its R&D staff.
Now we're seeing gossip about the investment bank houses involved in the deal. Allergan has aligned itslef with Goldman to cast further aspersions toward the Valeant business plan and model. But ... when they were looking for a partner in this effort, Morgan Stanley had pitched their services too. In an email (just released) to Allergan management, Morgan CEO said Allergan needed to be even more aggressive in attacking Valeant's model, and the model was also termed a 'house of cards'. Maybe we can get a Presidential candidate to call it "voo-doo economics" too?
Posted by Bruce Lehr June 16th 2014.