Hi Dan,
One issue that is not being covered by any analyst is the ability of Allergan to raise cash due to its strong balance sheet and excellent debt ratings for distributing cash as special dividend. This move in itself will make Valeant walk away as their intention is to utilize Allergan's strong cash flows. If majority of future cash flows will be locked in servicing debt then Allergan no longer remains attractive to Valeant.
In current environment, if any strategic acquisition is not coming to fruition then are there any hurdles in Allergan by laws in declaring special dividend? I would think this situation begs the classic dividend recapitalization response.
Thank You
