10 Updates

Investors Not Impressed With Valeant's New Bid For Allergan

May 28 2014, 11:06am CDT | by

For two weeks, Valeant Pharmaceuticals has been promising to bolster its hostile bid for Allergan to win the widely watched takeover battle. But investors do not seem to be impressed with Valeant’s...

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8 weeks ago

Investors Not Impressed With Valeant's New Bid For Allergan

May 28 2014, 11:06am CDT | by

For two weeks, Valeant Pharmaceuticals has been promising to bolster its hostile bid for Allergan to win the widely watched takeover battle. But investors do not seem to be impressed with Valeant’s enhanced $49 billion offer for the maker of Botox.

Valeant increased on Wednesday morning the cash that the company is offering Allergan shareholders by $10 per share to $58.30. Valeant continued to offer the same 0.83 of a Valeant share and added a contingent value right sweetener around Allergan’s experimental vision-loss drug that Valeant claims could result in payments to Allergan shareholders worth as much as $25 a share.

In the tax-driven deals that companies like Valeant have pursued aggressively in recent years, shares of both the acquirer and seller have tended to increase when the deals are announced. Investors, however, sold shares of both Valeant and Allergan on Wednesday. In morning trading, shares of Valeant fell by 2.2% and shares of Allergan dropped by 4.4% to $157.77. Wall Street analysts from Credit Suisse and Wells Fargo said that the new Valeant offer could not be good enough. “We hoped for something more imaginative, like substantially altering the share of cash and stock Valeant will use or a more substantial increase in the value offer,” wrote Aaron “Ronny” Gal, an analyst at Bernstein Research. “The Valeant offer is rather disappointing. It does not really alter the fundamental value of the offer.”

Like a hedge fund manager promoting a short position, Allergan came out swinging against Valeant Pharmaceuticals on Tuesday, questioning whether Valeant’s low tax rate was sustainable and raising other issues surrounding Valeant’s debt-fueled acquisition strategy and accounting. The point was to undermine the appeal to Allergan shareholders of Valeant’s stock, which Valeant is using as currency for its proposed deal. Allergan’s board said on Wednesday that it will review the new Valeant proposal, but Allergan’s board and its CEO, David Pyott, have made it pretty clear they want to keep Allergan an independent company.

During a long presentation on Wednesday to promote his new offer, Valeant CEO Michael Pearson said many of Allergan’s assertion against his acquisition-driven business model were incorrect. “It was a little insulting to be called a Tyco but I guess time will tell,” Pearson said. “This industry the R&D productivity has been very very low, so how all companies grow in this industry is through making really good acquisitions and growing those acquisitions after they make them.”

Pearson, who is working with hedge fund billionaire William Ackman in this takeover effort, said he fully expects Valeant will be successful in its attempt to purchase Botox-maker Allergan. In a sign that he means business, Valeant also announced on Wednesday that it will sell several injectable treatments for facial wrinkles to Nestle for $1.4 billion. At the same time, Pearson was careful to say that he would not be putting together an all-cash deal for Allergan or bid against himself. “We are not going to keep offering against ourselves,” Pearson said. “We are still willing to sit down with management and the board to negotiate a deal, but we are not going to continue increasing our offering until we have that chance to sit down.”

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

Melbourne Rising Media Launch
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robbe ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by ...
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Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hishammuddin Hussei ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the s ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 mil ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Mini ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaa ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) toda ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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