Will Allergan Buy Its Way out of a Takeover?

There has been no shortage of drama relating to Valeant Pharmaceuticals'  (NYSE: VRX  ) proposed takeover of Allergan  (NYSE: AGN  ) . Valeant's proposed takeover is estimated to generate a potential $2.7 billion in cost savings for the combined company, in part by slashing Allergan's spending on R&D and administration (and presumably jobs in those departments).

In a move that bids to protect those jobs by keeping Allergan independent, Allergan's board immediately implemented a poison pill to prevent the takeover. Will the poison pill be enough to stop Valeant, especially given that the company is supported by Bill Ackman, whose firm owns over 9% of Allergan shares?

Speculation has swirled that Allergan might try another option -- an acquisition to boost its size beyond Valeant's ability and willingness to buy. Shire  (NASDAQ: SHPG  )  is a big potential target. Find out why in the video below.

Allergan's had a great run, but can it beat this top stock in 2014?
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 29, 2014, at 7:17 PM, FrankoJames wrote:

    I do not know, but please let me if you know any company that is currently working on generic Botox.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2936050, ~/Articles/ArticleHandler.aspx, 10/23/2014 2:45:00 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement