In this video, health-care analyst David Williamson discusses Valeant's latest acquisition target. Although this is no bite-sized morsel, generic-drug maker Actavis would be a potentially transformative merger of equals. 

The deal appears to have hit a snag, and that could be the best outcome for investors in both companies. Valeant probably wouldn't offer Actavis investors much of a premium, and Valeant investors excited about small, accretive deals in the brande-drug space would be in for a rude awakening.  Watch and find out why.

David Williamson has no position in any stocks mentioned. Follow David on Twitter: @MotleyDavid.

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