The big news in US equities markets today is the potential, massive merger in the pharmaceutical industry
The big news in US equities markets today is the potential, massive merger in the pharmaceutical industry. Valeant Pharmaceuticals (VRX) is offering to buy Allergan (AGN) for a cash-and-stock deal worth just under $46 billion. Valeant is a generic drug company that's been on a buying spree as it moves into specialty medicine. Allergan is known mostly for Botox injections - a $2 billion business last year and rapidly growing. The most noteworthy part of this deal is the involvement of hedge fund manager Bill Ackman and his Pershing Square fund. Ackman had covertly bought up 4.99% of AGN's shares before partnering with Valeant to pursue a hostile takeover. Ackman now owns 9.7% of AGN's outstanding stock. It appears investors (and analysts) believe this is a good deal for both companies with AGN up 16% and VRX up 7% as of this writing. (VIEW LINK)
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