What Makes Allergan an Attractive Target for Actavis?

What Makes Allergan an Attractive Target for Actavis?

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The transcript discusses Actavis's interest in acquiring Allergan for over $60 billion, surpassing a hostile bid from Valeant backed by Bill Ackman. The deal is complex, with historical context involving multiple companies. Current negotiations have Actavis and Allergan close to an agreement, with Allergan opposing Valeant due to its reputation for cutting R&D. Financial challenges exist due to high valuations. Legal issues and investor reactions are also significant, with potential legal actions against Ackman for his stock accumulation methods.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which company is Actavis in talks to acquire?

Omega

Salix

Allergan

Valeant

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is Allergan opposed to being acquired by Valeant?

Valeant is known for cutting R&D

Valeant is a new company

Valeant's offer is too high

Valeant has a better reputation

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main financial challenge Actavis faces in acquiring Allergan?

Regulatory issues

Lack of investor interest

Actavis's low trading value

Allergan's high trading value

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What legal issue is Bill Ackman potentially facing regarding his Allergan shares?

Unauthorized voting rights

Illegal stock manipulation

Tax evasion

Insider trading

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What did the recent court ruling allow Bill Ackman to do?

Sell his shares

Merge with another company

Vote his shares in a proxy fight

Increase his shareholding