Thu, Feb. 19, 12:55 PM
- Actavis (ACT +1.6%) commences concurrent public offerings of $4.2B of common stock and $4.2B of Mandatory Series A Convertible Preferred Shares. Net proceeds will assist in funding its acquisition of Allergan (AGN +0.5%). Underwriters over-allotments are 10% of the number of shares in each offering. Terms and pricing have yet to be announced.
Wed, Feb. 18, 8:53 AM| 3 Comments
Fri, Feb. 6, 9:20 AM
- According to some observers, Pfizer's (NYSE:PFE) $17B takeout of Hospira (NYSE:HSP) is only a prelude to a bigger deal(s) considering that it was prepared to spend $120B for AstraZeneca (NYSE:AZN).
- According to Gabelli analyst Kevin Kedra, Actavis Plc (NYSE:ACT) is an attractive target, especially since nabbing Allergan (NYSE:AGN) and its fast-growing drug portfolio. A Pfizer takeover would be big enough to overcome the U.S. Treasury's stricter rules on inversions and lower its tax bill.
- John Boris of SunTrust Banks says GlaxoSmithKline (NYSE:GSK), AbbVie (NYSE:ABBV), Bristol-Myers Squibb (NYSE:BMY) and Mylan (NASDAQ:MYL) may be on the radar as well.
- Pfizer had $33B in cash at the end of September which it will use a portion of plus debt to pay for Hospira.
Nov. 17, 2014, 12:22 PM
- It's doubtful that Pershing Square's Bill Ackman is disappointed that Valeant Pharmaceutical (VRX +0.3%) lost out to Actavis (ACT +1.9%) in a bid for Allergan (AGN +5.7%) considering the tidy $2.6B profit he'll bag on his 9.7% stake in the Botox maker.
- Pershing Square acquired 28.9M shares of AGN at $129.28 and will sell at $219. Doing the math: ($219 - 129.28) x 28.9M = $2.59B.
- The hedge fund will pay Valeant ~$389M as part of their profit-sharing agreement so its ultimate take will be ~$2.2B.
- Previously: It's official: Actavis buys Allergan
Nov. 17, 2014, 9:26 AM
Nov. 16, 2014, 3:51 PM
- A deal could be announced as soon as Monday.
- Allergan (NYSE:AGN) is trying to fend off a hostile bid by Valeant (NYSE:VRX), which has offered AGN about $54B in cash and stock, and has said it was prepared to raise its offer to $200/share.
- Valeant, which has not been contacted by Allergan, would likely abandon its bid in the face of the Actavis (NYSE:ACT) deal.
- The deal could include a $2B breakup fee that would need to be paid by Valeant were it to try and outbid Actavis.
- Sources: Reuters, CNBC
Nov. 12, 2014, 12:22 PM
- Allergan (AGN +0.7%) and Actavis (ACT -0.4%) are in advanced negotiations on a takeout bid for the Botox maker. According to people close to the matter, the price will be at least $200 per share or $60B. There remains a gap, though, in what Allergan is asking (~$210/share) and what Actavis wants to pay (~$200/share). Regardless, a deal seems likely in the next few weeks since the Valeant (VRX +0.9%)-instigated special shareholders meeting is December 18.
- The potential transaction will most likely include ACT stock with cash.
- Previously: Special shareholder meeting scheduled for Dec. 18
Nov. 11, 2014, 4:16 PM
- The presence of Pershing Square's Bill Ackman on the list of major investors in Zoetis (NYSE:ZTS) sends a clear signal that it may be an acquisition target by none other than Valeant Pharmaceuticals (NYSE:VRX). A deal is not out of the question in light of its diminishing prospects of acquiring Allergan (NYSE:AGN) since Actavis (NYSE:ACT) joined the mix.
- In after hours trading, VRX is up a fraction and ZTS is unchanged, both on higher-than-normal volume.
- Previously: Zoetis jumps 6% on report of Ackman stake
Nov. 3, 2014, 2:18 PM
- According to the Wall Street Journal, Actavis (ACT +2.1%) is negotiating with Allergan (AGN +1.2%) about a bid for the Botox maker. The board wants to keep the matter close to its vest, however.
- The company says, "Our board has determined that premature disclosure with respect to the possible terms of any transaction might jeopardize continuation of any discussions or negotiations. Our board has instructed management not to disclose the possible terms of any transactions or proposals, or the parties hereto, unless and until an agreement in principle relating thereto has been reached."
- The potential marriage is not unexpected considering Allergan's visceral aversion to a takeover by Valeant Pharmaceuticals (VRX +0.2%).
Oct. 27, 2014, 7:51 AM
- In a letter to the Allergan (NYSE:AGN) BOD, Valeant Pharmaceuticals (NYSE:VRX) CEO Michael Pearson says his firm is prepared to sweeten its bid for the Botox maker to at least $200 per share, assuming Valeant's stock rises, although the higher offer would include more cash.
- Valeant's previous bid was $72 in cash plus 0.83 share of VRX for each AGN share. VRX closed Friday at $129.13, valuing the offer at $179.18.
Oct. 21, 2014, 3:31 AM
- More tensions are rising in the takeover battle for Allergan (NYSE:AGN), as Bill Ackman and Valeant (NYSE:VRX) say CEO David Pyott tried to discredit Valeant as it was making a hostile takeover bid.
- The court filing made late on Monday in California, accuses Pyott of providing false and misleading information about Valeant to investors, failing to disclose Allergan CFO Jeff Edward's resignation in a timely manner, and ignoring outside advisors' input when he falsely called Valeant's account "opaque" and "problematic."
Oct. 20, 2014, 12:43 PM
- The collapse of Abbvie's (ABBV +0.6%) planned takeover of Shire plc (SHPG +2.4%) opens a door for Allergan (AGN +2%) to fend off the hostile bid from Valeant (VRX +2.2%). Institutional shareholder Paulson & Co., which owns stakes in both firms, favors the marriage.
- Allergan CEO David Pyott received a call from Shire last week. If a deal gets done it will make Allergan too expensive for Valeant to acquire. The chances of a deal appear reasonable. Allergan contacted Shire about a combination some time ago.
Oct. 20, 2014, 10:15 AM
- Valeant (VRX +3.7%) CEO Michael Pearson says his firm may raise its offer for Allergan (AGN +1.9%) and it will not walk away from its pursuit of the company prior to the December 18 special meeting of shareholders.
- He also says that the rumor of a rift between Valeant and Pershing Square Capital Management is false.
Oct. 8, 2014, 1:56 AM
- In yet another twist over the months-long takeover battle between Valeant (NYSE:VRX) and Allergan (NYSE:AGN), Actavis (NYSE:ACT), which was previously reported to drop M&A talks, plans to approach Allergan again about a potential merger, Reuters reports.
- Actavis' new overture would come as Valeant and Bill Ackman's Pershing Square plan to boost their offer by about $15 per share, valuing Allergan at more than $190 per share.
- Allergan, which has repeatedly rejected the offers, would consider a takeover proposal that values the company at above $200 per share.
- AGN +1.2% AH
- ACT +1.1% AH
- VRX +1.8% AH
Oct. 7, 2014, 6:06 PM
- Valeant (NYSE:VRX) and Bill Ackman's Pershing Square Capital plan to up their hostile cash/stock bid for Allergan (NYSE:AGN) by $15/share, the WSJ reports. Based on Valeant's Tuesday close, that puts the new offer around $191/share.
- Valeant/Pershing are still reportedly "ironing out questions of timing and the mix of cash and stock for the additional $15-per-share rise."
- AGN +2.6% AH to $191.00.
- Earlier: Allergan asks judge to keep Pershing's stake out of shareholder vote
- Update (6:15PM): Valeant is up 3.4% AH.
Oct. 7, 2014, 7:24 AM
- As expected, Allergan (NYSE:AGN) files a request in federal court asking the judge to block Bill Ackman's 10% stake from voting at the December 18 special shareholders' meeting. In its lawsuit, it accuses Pershing Square of insider trading because it acquired its shares based on non-public information, i.e. Valeant's (NYSE:VRX) bid.
- Ackman says the lawsuit is without merit. He structured trades to avoid triggering certain FTC disclosure rules and he used options to sidestep the required government approval to buy more than $75M of a company with the intent to influence control of the business.
- A hearing on the request is scheduled for October 28.
- The case is Allergan v. Valeant Pharmaceuticals International Inc. 14-cv-01214, U.S. District Court, Central District of California (Santa Ana).
AGN vs. ETF Alternatives
Allergan Inc is a multi-specialty health care company develops and commercializes pharmaceuticals, biologics and medical devicesand over-the-counter products. It offers products forophthalmic, neurological, medical aesthetics and medical dermatology.
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