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Valeant CEO 'delighted' by Paulson's Allergan stake

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(Reuters) - Valeant Pharmaceuticals Inc's (VRX.TO) chief executive said on Thursday he is "delighted" that hedge fund Paulson & Co has amassed a large stake in takeover target Allergan Inc (AGN.N), and that he believes Valeant will garner enough support to trigger a special meeting of Allergan's board.

Reuters reported exclusively on Wednesday that Paulson had built a stake in Allergan of more than 6 million shares and supports a deal between the Botox maker and Valeant.

Paulson's shares, along with stock owned by Valeant ally Pershing Square Capital Management, give the company "a nice starting point" toward reaching at least 25 percent support of Allergan shares needed to call the special meeting that could replace most of Allergan's board, Valeant Chief Executive Michael Pearson said.

"We do believe we'll get the 25 percent and the majority we need to get this deal consummated," Pearson said on Canada's BNN TV.

Allergan has rejected Valeant's hostile $52 billion bid and refused to negotiate.

(Reporting by Rod Nickel in Winnipeg, Manitoba; editing by Matthew Lewis)

http://www.reuters.com/article/2014/06/26/us-allergan-valeant-hedgefunds-idUSKBN0F124L20140626
 












I wouldn't make too much of the Paulson stake. They just want to make money which they will whether through the acquisition or AGN acquiring someone else.

Interesting how Valeant is stating that they almost have enough votes for the 25% when a week or two ago they were claiming that all of AGN stock was in the hands of hedge funds and that they already had 51% of shareholders on board with their plan. Seems to be contradictory statements to me. Which is it over 51% or almost 25%.
 




Paulsons another insider trading scumbag. Bought a shit load of vrx for the first time ever while it was on a free fall, as ackman's was starting to rapidly accumulate agn. then he pops in with 6,000,000 shares of agn.

They're all screwed
 












Six weeks is this a joke. At minimum DP will schedule special shareholder meeting Nov 30 per bylaws. then on Noc 29 we declare a stock split--oops--all groundwork and porxie collection VRX did needs to starts over to prove the 25% then we have another 120 days to schedule special shareholder meeting. We can jerk his chain well into 2015. Why wouldnt we ?
 








Anonymous said:
Six weeks is this a joke. At minimum DP will schedule special shareholder meeting Nov 30 per bylaws. then on Noc 29 we declare a stock split--oops--all groundwork and porxie collection VRX did needs to starts over to prove the 25% then we have another 120 days to schedule special shareholder meeting. We can jerk his chain well into 2015. Why wouldnt we ?
Click to expand...

Yep, the longer we can draw this out, the more time we have to make moves. I love watching desperate BA and MP scramble like this though :)
 








Just because Allergan doesn't send a press release every time someone goes to the bathroom (like Valeant seems to do) doesn't mean they're sitting around twiddling their thumbs. Mr. Pyott is one of the smartest people in this industry and with the moves he'll make for Allergan Valeant will be left in the dust - holding valueless stock!!
 




Anonymous said:
Just because Allergan doesn't send a press release every time someone goes to the bathroom (like Valeant seems to do) doesn't mean they're sitting around twiddling their thumbs. Mr. Pyott is one of the smartest people in this industry and with the moves he'll make for Allergan Valeant will be left in the dust - holding valueless stock!!
Click to expand...

Hell yeah. Word on the street (and at the NSM) is that Pyott has LOTS of strategic moves up his sleeve and has yet to play a single one. Going to be a while. Get yo popcorn ready!
 
























It's over! Company went from Penthouse to Outhouse, thanks DP!
#3
Today, 08:55 AM
Anonymous

Posts: n/a
Re: Allergan can and should go alone
Allergan ( AGN : NYSE)

By Sterne, Agee & Leach ($173.95, June 30, 2014)

We held a call with Allergan's Chief Executive David Pyott that left us even more convinced that management's actions are motivated by the desire to maximize shareholder value rather to keep Allergan an independent company.

That said, we do believe Allergan (ticker: AGN ) will take near-term actions that shareholders should value, thus increasing its chance of remaining independent. We remain buyers of Allergan given our confidence that this team will drive further shareholder value. Management will announce further cost cuts in the near term, driving year-over-year earnings-per-share growth to more than 25%. If Allergan can deliver about $9.00 in EPS by 2016, applying a 20 times multiple of this would give a stock price $180, which is not far from the current Valeant Pharmaceuticals International ( VRX ) offer.

First, investors may question how Allergan is able to cut its costs so drastically and some will suggest that this validates Valeant's point that the company was fat. We disagree. As we have previously written, we do not expect management to cut any investment that delivers a high return in near term (e.g. DTC, direct sales). Most of these cost cuts will come from longer-term market development or early research and development projects. While in the past, management chose to invest in these net-present-value (NPV) positive longer-term projects, these will have to be cut or delayed in order to deliver higher near-term returns to shareholders.


Second, as Allergan cuts costs on its own and raises its standalone value, investors should want a premium over this new value further increasing the price Valeant will have to pay for the company, we believe.

All options are on the table. Allergan understands what investors want, and hopes to deliver most of this in the near term. The cost cuts to raise future EPS is one example, however, the company has numerous additional options including use of is balance sheet for acquisition purposes. Mr. Pyott made it clear to us that while Allergan will look at all options in business development, it will not engage in a purely defensive deal that could potentially destroy shareholder value. Other options include share buybacks or a friendly merger.

Many investors have suggested to us that they would support a combination of Allergan and Actavis ( ACT ) (rated at Buy), however, both management teams while acknowledging the potential benefits of such a transaction, have been mostly non-committal. Ultimately, shareholders will drive the outcome of this situation.
 




Anonymous said:
It's over! Company went from Penthouse to Outhouse, thanks DP!
#3
Today, 08:55 AM
Anonymous

Posts: n/a
Re: Allergan can and should go alone
Allergan ( AGN : NYSE)

By Sterne, Agee & Leach ($173.95, June 30, 2014)

We held a call with Allergan's Chief Executive David Pyott that left us even more convinced that management's actions are motivated by the desire to maximize shareholder value rather to keep Allergan an independent company.

That said, we do believe Allergan (ticker: AGN ) will take near-term actions that shareholders should value, thus increasing its chance of remaining independent. We remain buyers of Allergan given our confidence that this team will drive further shareholder value. Management will announce further cost cuts in the near term, driving year-over-year earnings-per-share growth to more than 25%. If Allergan can deliver about $9.00 in EPS by 2016, applying a 20 times multiple of this would give a stock price $180, which is not far from the current Valeant Pharmaceuticals International ( VRX ) offer.

First, investors may question how Allergan is able to cut its costs so drastically and some will suggest that this validates Valeant's point that the company was fat. We disagree. As we have previously written, we do not expect management to cut any investment that delivers a high return in near term (e.g. DTC, direct sales). Most of these cost cuts will come from longer-term market development or early research and development projects. While in the past, management chose to invest in these net-present-value (NPV) positive longer-term projects, these will have to be cut or delayed in order to deliver higher near-term returns to shareholders.


Second, as Allergan cuts costs on its own and raises its standalone value, investors should want a premium over this new value further increasing the price Valeant will have to pay for the company, we believe.

All options are on the table. Allergan understands what investors want, and hopes to deliver most of this in the near term. The cost cuts to raise future EPS is one example, however, the company has numerous additional options including use of is balance sheet for acquisition purposes. Mr. Pyott made it clear to us that while Allergan will look at all options in business development, it will not engage in a purely defensive deal that could potentially destroy shareholder value. Other options include share buybacks or a friendly merger.

Many investors have suggested to us that they would support a combination of Allergan and Actavis ( ACT ) (rated at Buy), however, both management teams while acknowledging the potential benefits of such a transaction, have been mostly non-committal. Ultimately, shareholders will drive the outcome of this situation.
Click to expand...

Did you actually read the article.............................?
 




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