Allergan, Inc. (NYSE:AGN) has been in the news often throughout the year so far. Beginning on April 22, 2014, Valeant Pharmaceuticals Intl Inc (NYSEVRX) (TSE:VRX) approached the board of Allergan with the interest of acquiring the botox maker, which was valued around $152.88 per share. Early May 2014, Allergan decided against the proposal and voted against the acquisition. Only a few weeks later, around May 28th, Pershing Square Capital manager, Bill Ackman, got onboard and eyed a joint acquisition with Valeant of Allergan. However, as several months went by, no new progress was being made by Ackman and Valeant. In an effort to insight more enthusiasm, Valeant directors sent a letter to Allergan’s directors with the proposal of increasing the buyout to be above $200 a share, about 31% higher than its original proposed takeover of $152.88 per share. Unfortunately, there still remains a gridlock and even more so after breaking news that Allergan was approached by a different firm with the interest of acquisition as well.
Allergan’s statements on being approached by another party
Allergan, Inc. (NYSE:AGN) disclosed this statement this morning: “We have been approached by another party regarding a potential transaction. We cannot provide assurance on the outcome of these contacts regarding transactions we have not announced and because 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 such transactions or proposals, or the parties thereto, unless and until an agreement in principle relating thereto has been reached or, upon the advice of counsel, as may otherwise be required by law. Our Board strongly believes that the more prudent course of action than that demanded by Valeant Pharmaceuticals Intl Inc (NYSEVRX) (TSE:VRX) and Pershing Square is for Allergan to focus on its operational excellence and to extend its track record of strong and increasing growth that our Board is confident will create significantly more value for stockholders than Pershing Square and Valeant’s Proposals.”
Lee Ainslie's Maverick Capital had a difficult third quarter, although many hedge funds did. The quarter ended with the S&P 500's worst month since the beginning of the COVID pandemic. Q3 2021 hedge fund letters, conferences and more Maverick fund returns Maverick USA was down 11.6% for the third quarter, bringing its year-to-date return to Read More
Actavis also approached Allergan
While the Board of Directors continues to remain silent on the potential other “parties”, Reuters reported in early October that Actavis plc (NYSE:ACT) had approached the company about a possible merger. From the current standpoint we are in, it could be another several weeks to months before we gain a better insight into exactly what is happening and where Allergan, Inc. (NYSE:AGN) is likely to go. However, as we can conclude with Allergan’s comments from today and throughout the courting process, they have a significantly different view and action plan than that of Valeant and Ackman. Now that other options are on the table, will we see Ackman and Valeant’s proposed takeover fall through the cracks?
H/T Fly on the Wall,