William Ackman's $47 billion joint bid with Valeant Pharmaceuticals International Inc to purchase Botox maker Allergan Inc may become a model for future deals, rival fund managers said. The unsolicited bid, the plans for which were revealed late on Monday, was unusual for a so-called activist investor such as Ackman. Usually, large acquisitions are the realm of private equity investors and corporations, not activist shareholders. Ackman, who runs the $13 billion Pershing Square Capital Management hedge fund, typically first buys a stake in a company and then agitates for change, sometimes leading to a sale. By having a bidder lined up in Valeant, Ackman essentially skipped that step, speeding the deal up and making his returns more likely.He already has a massive paper profit on his 9.7 percent stake in Allergan, built over February and March. Allergan's shares rose more than 15 percent on Tuesday.At the Active-Passive Investor Summit, an industry conference in New York on Tuesday, fund managers and investors said they expected more activists and companies to explore this route, and it could help speed up the pace of merger and acquisition activity in the process.
Allergan, Inc. is a multi-specialty health care Company focused on developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter products. Shares of AGN traded higher by 15.25% or $21.65/share to $163.65. In the past year, the shares have traded as low as $81.33 and as high as $142.00. On average, 3082310 shares of AGN exchange hands on a given day and today's volume is recorded at 32433300.
Valeant Pharmaceuticals International, Inc., formerly Biovail Corporation, is a multinational, specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products. Shares of VRX traded higher by 7.46% or $9.4/share to $135.41. In the past year, the shares have traded as low as $71.99 and as high as $153.10. On average, 1992590 shares of VRX exchange hands on a given day and today's volume is recorded at 17982564.
Valeant Pharmaceuticals International, Inc., formerly Biovail Corporation, is a multinational, specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products. Shares of VRX traded higher by 7.65% or $10.62/share to $149.38. In the past year, the shares have traded as low as $72.59 and as high as $170.45. On average, 372348 shares of VRX.TO exchange hands on a given day and today's volume is recorded at 1128864.
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