Seeking Alpha

Allergan mulling takeover candidates to avert Valeant

  • According to the WSJ, Allergan (AGN +3.8%) has approached Salix Pharmaceuticals (SLXP +14%) and at least one other company about a potential buyout in order to thwart Valeant Pharmaceuticals' (VRX +3.7%) pursuit of Allergan. The status of negotiations is unknown, but a deal could be announced as early as next month.
  • Salix has a market cap of almost $10B. It has generated ~$1.3B in sales over the past 12 months.
  • Salix itself is involved in a tax inversion deal with a unit of Italian firm Cosmo Pharmaceuticals SpA.
  • Allergan is highly motivated to move quickly. Sources say that Valeant is close to securing the support of 25% of AGN shareholders required to call a special meeting.
Comments (1)
  • radcon111
    , contributor
    Comments (87) | Send Message
     
    Sources ?
    ON Aug. 17, A SA article reported just 4% of the shares were tendered.
    19 Aug 2014, 06:40 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs