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Allergan adopts poison pill following $47B hostile bid

  • Allergan (AGN) has adopted a one-year stockholder rights plan following a $47B hostile takeover bid from Valeant (VRX) and Bill Ackman's Pershing Square.
  • If any unapproved investor purchases 10% or more of Allergan's stock, other shareholders will have the right to acquire discounted shares. The plan would prevent Ackman from significantly increasing his 9.7% stake and it would stop Valeant from taking its offer directly to shareholders.
  • Allergan said the plan is not designed to prevent a takeover bid that directors are in favor of; rather it "aims to provide the board with adequate time to fully assess any proposal." (PR)
Comments (4)
  • Roger C. Wren
    , contributor
    Comments (213) | Send Message
     
    It seems that current management does not want to be in a situation of looking for a new job. Looking out for the interest of shareholders not.
    23 Apr, 04:48 AM Reply Like
  • Patent News
    , contributor
    Comments (1312) | Send Message
     
    or they ARE looking for HIGHER BIDS? and the current ackman insider trading bid undervalued the company?
    23 Apr, 05:29 AM Reply Like
  • Chudnoff
    , contributor
    Comments (8) | Send Message
     
    Talk about leaving yourself open to a shareholder suit. The directors self serving action this morning is a clear indication of misalignment with the true owners, the stockholders. The market is smarter than everyone. The share price of Allergan was flirting between 100 and 116 even when Ackman was on a buying binge. Now that his interest is a matter of public interest the stock price has jumped significantly. However one can assume that the reason for this is quite simply that Valient is the ONLY logical player out there that can deliver immense operating savings (2.5 billion) as a result of sales force and market overlays. Take away Valient and you can say goodby to 150 to 160 valuations. When that happens the lawyers will get rich representing aggrieved shareholders holding shares the market says are worth less absent Valient synergies.
    23 Apr, 07:01 AM Reply Like
  • User 11703951
    , contributor
    Comment (1) | Send Message
     
    Not sure how Ackerman will be able to add value to Allergan from jail. Insider trading is still illegal and Allergan doesn't need this type of character to defile its business
    23 Apr, 09:33 AM Reply Like
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