Valeant's CEO J. Michael Pearson and Allergan's top investor Bill "activist investor" Ackman have tired of waiting to get the bargaining table with Allergan's board. They sweetened their offer to Allergan shareholders on Friday to the tune of $54 B and now have gone hostile. They will call for a special board meeting where they will try to unseat as many as 6 sitting board members -- and will appeal to the rest of the investors to take them up on their buy out offer for Allergan.
This can't be viewed as unexpected and we'll see how it plays out. But, you have to be wary of Pearson's success in achieving takeovers he wants if you are sitting at Allergan right now. See Fierce Biotech and Fierce Pharma.
Posted by Bruce Lehr June 2nd 2014.