But talks have now ceased between Allergan and Salix. The full set of reasons for the collapse of the talks was not immediately clear, but it appears unlikely that the two companies will reach a deal. That could increase the likelihood that Valeant and Pershing Square will prevail at a special meeting of Allergan shareholders scheduled for Dec. 18, when they hope to vote out a majority of the Allergan board and pave the way for a takeover. “That was the last line of defense for Allergan before Valeant puts in place its six nominees,” said Phillip D. Torrence, a partner at the Honigman law firm
Phillip D. Torrence works mainly with the banking/financial firms, and has an interest in favoring them. The actual last line of defense for Allergan is the shareholder vote. And that is not confidently assured to go in the direction of Pershing Square and Valeant.
Analysts have mentioned it (leveraged buyback) before, but figured it might not be enough to stop Valeant unless it was very large. Many shareholders would question why now when the stock is near an all time high.
