Allergan and Valeant Rally on News of Potential Three Way Deal With Pershing Square
Shares of Allergen (NYSE: AGN) and Valeant Pharmaceuticals (NYSE: VRX) are moving higher, gaining 18 percent and 10.7 percent respectively after rumors the former, with the help of Bill Ackman, will acquire the latter for $45 billion, with one third being cash.
The official hostile bid is expected by Tuesday.
Ackman's Pershing Square has reported a 9.7 percent beneficial ownership in Allergan, which includes call options.
Pershing plans to buy $400 million of Valeant's Allergen stake at a 15 percent discount, and may have the right to end the pact if Valeant does not make hostile bid before May 2.
The deal is expected to create $25-$30 per share worth of synergies.
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