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Pfizer, Allergan In 'Final Innings' Of Merger Talks

November 19, 2015 9:41 am
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  • Shares of Allergan PLC (NYSE: AGN) and Pfizer Inc. (NYSE: PFE) were both trading lower by nearly 2 percent early Thursday morning.
  • CNBC, citing sources, said the two companies are in the "final stages" of discussions to merge.
  • CNBC added that it is expected to be an all-stock deal and will be announced after the Thanksgiving holiday.

Pfizer began "preliminary friendly discussions" with Allergan for a potential acquisition back in late October. Analysts at both Credit Suisse and JP Morgan were constructive on a potential transaction that would combine Pfizer's $200-billion plus valuation and Allergan's nearly $125 billion valuation.

At that time, Credit Suisse's Vimal Divan argued that Allergan is one of the few targets that would "fit" Pfizer's inversion aspirations. In addition, an acquisition would offer Pfizer a much "needed" boost to its near-term growth along with a "modest" pipeline to compliment is innovative business.

Related Link: These ETFs Should Love The Pfizer-Allergan News

JP Morgan's Chris Schott echoed similar sentiments noting that an acquisition of Allergan would be accretive to Pfizer's innovative business and the broader company.

CNBC: Talks In ‘Final Innings'

CNBC reported Thursday morning that Pfizer and Allergan's talks have progressed and are now in the "final innings." The media outlet, citing its "sources" also noted that the acquisition is expected to be an all-stock deal consisting of "more than 11 shares of Pfizer for each share of Allergan."

Shares of Pfizer were trading lower by 1.35 percent at $32.85 following CNBC's report, while Allergan's stock was lower by 1.42 percent at $305.98 at the same time.

CNBC also added that an announcement is expected to come after the Thanksgiving holiday as the companies are awaiting guidance from the Treasury Department.

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