investors coming in

Allergan spiked Friday after it was reported that 13 hedge funds established new positions in the company in the second quarter, while nine added to their stake.

 

Apparently they prefer to own Allergan stock over Valeant.

 

Yes. It could be that Valeant offer.

 

Yes it could be that Allergan is a good buy for the long term.

 

Hedge funds don't buy for the long term

 

Huh?

 

Yeah, AGNs largest shareholder sold all of their 19 million shares. So no, I wouldn't say they are long on AGN.

 

Everyone holding allergan right now is event driven and wants the premium from the deal going through. Hedge funds are buying to take advantage of the opportunity. They will vote for the deal and then get the premium and exit.

 

I think Faber said about 26% were event driven

Allergans largest shareholder is an insider trader

Second largest shareholder sold HIGH because they could, and they know it won't stay there since there's no deal and they will buy on the dip and run long again...people put money is and out of companies they're long on all the time. After the initial deal excitement wanes (aka the last 3 weeks) the shirt termers unwinds and long termers get back in

Nice earnings report

 

Is the title supposed to say "investIGATers coming in"?

 

If all these event driven investors are pro-deal then why did Valeant only get 4% of holders to tender their shares?

 

Lots of arbs coming into agn

 

Arbs??? Arbitrators??? Think this deal is close to happening or not?

 

Arbitrage Funds... generally speaking "Arbs" buy the stocks of companies seen as takeover options. They are inherently pro-deal, as there's cash to be made on the price premium associated with the purchase.

The more "arbs" and hedge funds that own shares of AGN, the more likely a deal would be if they get to vote their shares

 

Based on the bylaws of AGN and the 2 year trading window history under scrutiny, any ARB is not entitled to vote toward a special meeting.

 

Why speak, if you clearly have no clue what you're talking about?

The two year trading history has nothing to do with the actual vote. The proxy filing has already occurred, no more proxies are required. All shareholders will have their right to vote AT THE MEETING.

Which means, hedge funds and arbs will vote, and they will vote unanimously for the deal since it'll represent a 10-15% short term immediate gain (it's why they do this in the first place)

 

As long as the judge protects shareholder rights so that Allergan mgmt can't pull a fast one.

 

Protect shareholder rights my ass!!!

 

Shareholder rights are protected when a company is allowed to exhaust all avenues of revenue growth without a court cutting that time short. Maybe buying another company is in Allergan shareholders best interest. It certainly can't be becoming part of Valeant.

 

buying another company with cash (and circumventing a shareholder vote) is never in the shareholders best interest. If an acquisition is what Pyott believes is the best route for stockholders, then he'd have no qualms presenting that purchase as an alternative to the sale to VRX at a meeting and allow the shareholders to vote on that too.

He's clearly trying to suppress this vote, by elongating the timeline, and making it an onerous process. if he was confident that a takeover wasn't in the best interest of the shareholders, then he'd have let the vote already occur.