Anonymous
Guest
Anonymous
Guest
Valeant;s partnership to purchase a company is a new move that everyone is going to now work against. It takes current law and stretches it to the legal/ethical limits.
Government, Communities, employees, CEOs, are now all on guard for this new game. Now the partner hopes more biders come in for Allergan and their stock will rise even higher. The problem is that the game relies on other company CEOs to jump in and make the higher bid. Good companies do not have time for these games and will steer clear.
Also, Allergan and Allergan share holders will compare the bid to the relative value of Allergan stock long-term and determine that the bid is not good enough. The partner will get frustrated as Allergan rejects the takeover and as the short term stock price moves lower it will start to sell and lower its 10% stake. Ultimately they may lose money on this in your face aren't we smart - play on the financial community.
Valeant will gain nothing on this attempted hostile take over. Now everyone (banks included) will now know how far Valeant will go to stretch the currently accepted rules and practices in the financial community and may look at giving out new loans with needed skepticism.
If you try to play a game by your own rules the other players in the game may just pick up and go home.
Government, Communities, employees, CEOs, are now all on guard for this new game. Now the partner hopes more biders come in for Allergan and their stock will rise even higher. The problem is that the game relies on other company CEOs to jump in and make the higher bid. Good companies do not have time for these games and will steer clear.
Also, Allergan and Allergan share holders will compare the bid to the relative value of Allergan stock long-term and determine that the bid is not good enough. The partner will get frustrated as Allergan rejects the takeover and as the short term stock price moves lower it will start to sell and lower its 10% stake. Ultimately they may lose money on this in your face aren't we smart - play on the financial community.
Valeant will gain nothing on this attempted hostile take over. Now everyone (banks included) will now know how far Valeant will go to stretch the currently accepted rules and practices in the financial community and may look at giving out new loans with needed skepticism.
If you try to play a game by your own rules the other players in the game may just pick up and go home.