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phil
April 22nd, 2014 at 6:54 am
Faber: Valeant to make $45B+ hostile bid for Allergan
Yesterday, 05:53 PM ET · VRX
• David Faber reports Valeant (VRX) will make a $45B+ hostile bid for Allergan (AGN), of which 1/3 will be financed with cash. He expects an announcement tomorrow.
• After factoring a 6% gain in regular trading a 19.7% AH gain, Allergan is currently worth $50.9B. Valeant is worth $46.4B, after accounting for a 3.2% gain in regular trading and a 10.3% AH gain.
• Valeant and Bill Ackman’s Pershing Square Capital have each filed 13Ds (I, II) stating Pershing Square now has a 9.7% stake in Allergan.
• Valeant says it expects to propose a merger with a ~$15B cash component, and that it’s contributing $75.9M in working capital to an entity (known as PS Fund 1) to be used by Valeant and Pershing to pursue their bid.
• Faber: “So Ackman can buy $3b in [Allergan] stock, which he will sell to [Valeant] for a lot more if it succeeds in an offer Ackman knew was coming.”
• Previous: Valeant and Ackman eye Allergan
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