Ackman 9.7% of Allergan already Made $1 Billion-Is it creating a Bidding War Johnson & Johnson Wants to Win?
May 9, 2014
UPDATED: May 12, Allergan CEO says ‘rumor mill’ inconsistent with company history of discreteness
Allergan CEO suggests “rumors” in the market regarding the company and its potential M&A plans may start outside of the company and may come from those that have an “interest” in spreading such rumors. Note that Bloomberg previously reported, citing sources, that Allergan has so far been rejected by companies including Sanofi (SNY) BUT NOT Johnson & Johnson (JNJ) and the news service quoted one source as having said that Allergan also contacted GlaxoSmithKline (GSK) and Novartis (NVS).
As early as April 24, 2014, this page reported that we suspected Ackman’s fund Pershing Square Capital’s (9.7% owner of Allergan) used Valeant as pawn with the goal of creating a bidding war-a war that Johnson & Johnson will likely want to win. And as we suspected the only winner to date is Ackman who has made almost $1billion in profits off the 38% share of Allergan. I don’t see the profits ending there as we’re likely to see Allergan sell for at least $100 billion. According to Bloomberg Allergan has received interest from both Johnson & Johnson and Sanofi. Ackman has prove to be quite the evil puppet master and he keeps pulling he strings.