Dive Brief:
- Valeant is going directly to Allergan shareholders after being rebuffed by management.
- Valeant and hedge fund Pershing Square are partnered. Pershing Square owns 9.7% of Allergan..
- Pershing, which is run by Bill Ackman, would like to replace many of Allergan's directors.
Dive Insight:
The partnership between Valeant and Pershing Square has made it much easier to be aggressive. Ackerman's move--going straight to shareholders regarding the offer and an attempt to change directors on the board--- is typically the beginning of a hostile takeover process. The current offer translates into $72 and 0.83 shares of Valeant stock in exchange for one share of Allergan. This is roughly a $9 billion increase from an offer made in mid-April, which translated to $48 and 0.83 share of Valeant.