Actavis Near $64B Deal for Allergan

The transcript discusses major M&A activities in the pharmaceutical sector, focusing on Allegan's defense against hostile takeover bids by Valiant and Ackman. Allegan's concerns include the potential stripping of R&D by Valiant. Legal actions have been taken against Ackman for insider trading. Shareholder dynamics play a crucial role, with meetings and votes influencing the outcome. Alternative strategies, such as acquiring Zoetis, are considered. The financial implications for key players like Blackman and Valiant are significant, with potential profits regardless of the outcome.

What makes the Actavis bid for Allergan significant in the pharmaceutical industry?

• It is the first time Allergan is being acquired.

• It is the smallest pharmaceutical deal of the year.

• It is the largest M&A deal of the year.

• It involves a novel combination of a corporate and an activist investor.

Why is Allergan opposed to the offer from Valeant?

• Valeant is a US-based company.

• Valeant offers a higher price per share.

• Valeant has a strong R&D focus.

• Valeant's business model involves cutting R&D spending.

What legal action did Allergan take against Bill Ackman?

• They accused him of tax evasion.

• They accused him of insider trading.

• They accused him of fraud.

• They accused him of breach of contract.

What is Valeant's potential Plan B if the Allergan acquisition fails?

• Acquiring a tech company.

• Acquiring Zoetis, an animal health company.

• Merging with Pfizer.

• Investing in new R&D facilities.

How has Bill Ackman benefited financially from his involvement in the Allergan deal?

• He lost money on his investment.

• He broke even on his investment.

• He doubled his investment.

• He tripled his investment.