Just Say Yes: Ackman Urges Allergan to Accept Valeant’s Overture
In an unusual move that has turned heads, Bill Ackman, activist investor and CEO of Pershing Square Capital, announced that he is partnering with Valeant Pharmaceuticals International Inc. (NYSE:VRX) in a bid to acquire Allergan Inc. (NYSE:AGN), the maker of the anti-wrinkle treatment Botox, for $46 billion, according to The Wall Street Journal.
Quebec-based Allergan is perhaps best known for producing Botox, but the biotech company makes several opthalmic treatments (Restasis, a dry-eyes treatment, is another top-seller), in addition to therapies in the areas of medical dermatology and neuroscience, according to the company’s website.
Ackman, as per usual, has been very vocal about the deal, which he says Allergan would regret not taking, should the company say no. The activist investor says that compelling “companies to do the right thing for shareholders,” is part of what he does, according to The Wall Street Journal. “And we have all kinds of ways of making that happen.”
“We will will do that here, we are committed to doing that here and we have an enormous financial and reputational” investment in making that happen, Ackman added.
Ackman warned that if Allergan were to turn down Valeant’s offer its stock would surely take a nosedive. He predicts it could fall by as much as $50 if the company were to reject the deal. “It’s not where we want to be, and it’s not where they want to be,” he added. Ackman is pursuing a 10 percent stake in Allergan, valued at around $4 billion, according to The Wall Street Journal, and the investment would be Ackman’s biggest ever.