John Paulson has a problem: He took a huge bath when AbbVie decided not to buy Shire because, even though it was ready to pay $54 billion for the company, the Irish pharma was basically just a tax shelter to Shire, and of the sort that is no longer kosher in the precincts of the U.S. Treasury Department. Now, John Paulson is Shire’s third-largest shareholder, and 30% drops in a company in which one is the third-largest shareholder are the kind of thing likely to produce something approaching panic in a hedge-fund manager.
John Paulson also owns a lot of Allergan shares. You may have heard of Allergan, either because it makes Botox, or because Bill Ackman talks about it a lot.
John Paulson has been listening closely to what Bill Ackman says about Allergan, which is that the company should take Valeant Pharmaceuticals $53 billion (or more?) offer and that if it doesn’t, he’s going to throw out its entire board and make Allergan take the deal. And John Paulson likes that plan. He likes it a lot. But he’d like it even more if all of those Shire shares he owns would one day be worth as much as they were when he bought them, all of those months ago, when tax inversions were the order of the day. And he has an idea on that front… Read more »
Acquisitions should be amicable. They should not become an addiction used to hide how crummy your operating margins are, but used sparingly, like when you are trying to stave off the affections of a serial acquirer. And they should definitely not involve Bill Ackman or alleged insider-trading. Behold: Read more »
And that form is a lawsuit which he has to pay lawyers to file. Phone calls, e-mails, letters, telegrams, CNBC appearances, PowerPoint presentations and carrier pigeons with the query, “Will my plan to solicit proxies to oust a majority of your stupid, intransigent board cause me troubles vis-à-vis poison pills?” were allegedly and will be in the future ignored, returned unread or turned over to Allergan’s vaunted R&D operations. Read more »
Valeant Pharmaceuticals CEO Michael Pearson hasn’t quite gotten a quarter of Allergan’s shares pledged to having a special vote on his $53 billion offer for the company, but that isn’t shaking his confidence. Read more »