There has been no shortage of drama relating to Valeant Pharmaceuticals' (NYSE:BHC) proposed takeover of Allergan (UNKNOWN:AGN.DL). 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.

David Williamson and Michael Douglass have no position in any stocks mentioned. The Motley Fool recommends Valeant Pharmaceuticals. The Motley Fool owns shares of Valeant Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.