Paulson & Co. acquired 5.6 million shares of Allergan valued at $948 million as of June 30, according to a filing with the U.S. Securities and Exchange Commission yesterday, making the firm the ninth-biggest holder.
Do you need someone to explain this to you? It's really simple, and not good news for AGN. He's selling VRX and buying AGN... Thus gaining more voting power to vote your board out. When the deal goes through, AGN share will get the premium.
This is where Pyott got outflanked and it is so obvious. Pearson knew this was going to be a long battle. So VRX lowered guidance, took the short term hit, and has now set themselves up to meet or exceed their lowered guidance. The stock has since recovered. AGN, trying to paint a picture of aggressive growth, upped guidance. Amid all of the distractions, I do not think they meet expectations. The cost cuts have not taken effect yet. So now you have both companies announcing quarterly earnings within three weeks of the meeting. VRX exceeds and their stock pops. AGN misses and its obvious Pyott's guidance was too aggressive. A rise in VRX stock raises the value of the deal exponentially.
