Pershing Square’s Ackman Makes Unorthodox Alliance to Buy Allergan – AGN

Shares of specialty pharmaceutical company Allergan, Inc. (AGN) are up 30 points, or 21%, at $171 and change in the premarket hours session, after The Wall Street Journal reported that activist investor Bill Ackman is partnering with Valeant Pharmaceuticals Int’l (VRX) in an effort to takeover Allergan, the maker of cosmetology blockbuster Botox.

In a 13-D securities filing with the Securities and Exchange Commission, Ackman, who holds a 9.7 percent stake, or 28,878,538 shares in Allergan, indicated that Pershing Square and Valeant agreed in late February to pursue Allergan. Valued at about $4.1 billion, the stake represents Ackman’s biggest investment ever, people familiar with the matter told the Journal.

Allergan in a statement late Monday said its board intends to evaluate any offer or proposal, if received by Valeant and Pershing Square, and that it “has had no discussions with either Valeant or Pershing Square with respect to this matter.” It said neither Valeant nor Pershing Square has put forward an offer or proposal with respect to any type of merger transaction involving the company.

According to CNBC, the deal’s total value would be over $45 billion. The LA Times notes however, that Allergan would probably reject “anything less than $54 billion to $57 billion.”

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