Bugs Must Die So Bill Ackman’s Career Can Live

Just 13 more deals like this one and Bill will be... back where he was before he lost all that money on Valeant.
Author:
Publish date:
Updated on

Last year was tough on old Bill Ackman, and this year hasn’t been much better. The stress is taking its toll. In short, Bill Ackman needs a win. He knows this. And not an empty, moral victory like learning a valuable lesson from a $4 billion loss, or a little bit of good news from his favorite food-poisoning chain, or big gains from a company he can’t name that you’ve probably never heard of anyway, or a 4% bump in a fish-stick purveyor, or getting to keep the fees he earned managing Massachusetts pension money. No, he needs something big. Something like making back 7.5% of what he lost on Valeant in one fell swoop. And Steve Schwarzman may be inclined to give it to him with a $4 billion deal for the pesticide-making half of Platform Specialty Products, which Pershing Square owns 14.5% of.

CryingAckman

“There is a reasonable possibility a deal happens,” a source said….

In the event of a deal, the debt retirement and stock buyback, shares could jump to near $20, according to a source.

And seeing as how Ackman paid just $13.63 for each of those shares, that would qualify as a big win. This being Ackman, however, that win is tempered by the knowledge that it could have been twice as big.

Ackman’s Pershing Square hedge fund holds a 14.5 percent stake, and has owned a leading stake, once as high as 31 percent, since PSP was formed in 2013.

Ackman set to cash in as Blackstone eyes chemical deal [N.Y. Post]

Related