Valeant and Pershing Square initiate hostile takeover of Allergan
- 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.
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.