Pershing Square Forms Joint Entity with Valeant Pharmaceuticals International Inc (VRX) to Acquire Allergan, Inc. (AGN)

Bill Ackman‘s Pershing Square has added Allergan, Inc. (NYSE:AGN) to its equity portfolio. The fund reported a new activist stake, which contains 28.89 million shares, equal to 9.7% of the outstanding stock. According to the filing with the SEC, the fund purchased the shares because it considers that the stock is undervalued and, hence, represents an attractive investment.

Bill Ackman in crowd

Pershing Square plans to engage in discussions with the company’s management and board of directors, as well as other shareholders regarding to Allergan, Inc. (NYSE:AGN)’s governance, board composition, management, operations, and other matters related to the company’s strategic plans and future.

Earlier in February, Pershing Square signed an agreement with Valeant Pharmaceuticals International Inc (NYSE:VRX), under the terms of which the parties agreed to consult with each other regarding their investments in Allergan. The parties agreed to form a joint entity, which will acquire Allergan. Valeant Pharmaceuticals has proposed a merger in which the shareholders of Allergan would receive common shares of Valeant and cash.

In a press release issued today, Valeant Pharmaceuticals International Inc (NYSE:VRX) stated that it has proposed an offer in which Allergan, Inc. (NYSE:AGN)’s shareholders should receive $48.30 in cash and 0.83 shares of Valeant for each Allergan share. The proposition represents a significant premium on Allergans’ stock price, and the shareholders of Allergan will also be able to benefit from the future growth of Valeant.

In addition, the statement said that Valeant Pharmaceuticals forecasts $2.7 billion in annual cost synergies, with 80% achieved in the first six months after the merger.

“The combination of Valeant and Allergan represents the most strategic and value-creating transaction I have ever analyzed.  I strongly urge the Allergan Board of Directors to carefully examine the proposed transaction and enter into negotiations with Valeant so that a merger can be consummated promptly.  We will be electing all-stock consideration in the transaction so that we can remain a long-term holder of the combined company,” the statement quoted Bill Ackman as saying.

Pershing Square is currently the largest shareholder of Allergan, Inc. (NYSE:AGN). Jacob Gottlieb’s Visium Asset Management is another shareholder, which in its latest 13F revealed holding some 2.65 million shares of the company, followed by Ken Griffin‘s Citadel Investment Group with 2.33 million shares.

Disclosure: none

Recommended Reading:

Bill Ackman’s Pershing Square Further Cuts Position In BEAM Inc (BEAM)

Bill Ackman Exercises Warrants and Buys 4 Mln Platform Specialty Products Corporation (PAH) Shares

Bill Ackman’s Equity Portfolio Moves During Q4

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!