Akman, a radical investor, plans to buy Elgin for us $45 billion

Source: on April 24, 2014, forbes.com, the American business community and rights safeguarding investors are on the same front? Just in a rare hostile takeover On Monday afternoon, it was reported that bill ackman, a billionaire hedge fund magnate, teamed up with Valeant pharmaceutical to make a bid for Allergan, a Botox maker In the rare two-way joint bid, companies announced Tuesday morning that the total value of the acquisition could exceed $45 billion In accordance with the offer, Valeant will exchange $48.30 in cash plus 0.83 shares of Valeant's common stock for each Elgin share Valeant said it was a "substantial premium" for Elgin's share price of $116.63 as of April 10 The next day (April 11), Pershing square capital in Ackerman crossed the 5% shareholding limit of the form 13D and "started a rapid stock accumulation" Pershing Plaza capital currently owns 9.7% of Elgin Strictly speaking, the holders of these shares are a new entity jointly formed by Pershing square capital and Valeant, named PS fund 1 Valeant, headquartered in Montreal, has adopted a roll up strategy in recent years to move towards the pinnacle of the pharmaceutical industry through acquisition Last year, it bought Bausch & Lomb for $8.7bn, after buying Medicis for $2.6bn Valeant CEO Mike Pearson said his goal is to make Valeant one of the world's top five pharmaceutical companies in the next few years "The merger of the two companies enables us to give full play to both our internal advantages and our complementary portfolio At the same time, applying Valeant's unique business model to the combined assets can have a huge synergistic effect " "While the CEO and board of directors of Elgin have made it clear in private and in public that they are not willing to discuss with us the establishment of a value enhancing consortium, we hope that this extremely attractive offer will enable us to have a fruitful discussion," Pearson said in the statement Valeant expects the deal to generate $2.7 billion a year in operating cost synergies "The merger of Valeant and Elgin is the most strategic and creative deal I've ever analyzed." "I strongly call on the board of directors of Elgin to carefully review the offer and negotiate with Valeant in order to complete the merger as soon as possible," Ackermann said We will choose the way of full share trading, so that we will become long-term shareholders of the merged company " Elgin shares opened up 15% and Valeant rose 5% The two companies are similar in size, with a market value of nearly $50 billion