![]() ![]() That has cost Valeant the chance to pursue other targets, in line with its strategy of growth through acquisitions. Instead, Valeant and Allergan exchanged potentially damaging critiques in a long conflict. Valeant must have known the move would put Allergan in play, but with Pershing Square’s votes and market clout Pearson would have hoped to have the edge. ![]() What was novel was Ackman’s agreement ahead of time with Valeant, a potential buyer of Allergan, to work together. Ackman’s fund was up a very strong 31 percent this year through the end of October, Reuters reported earlier this month. Activism has been a money-spinner in recent years, delivering among the best returns of all hedge-fund strategies in 2012, 2013 and so far in 2014, according to indexes maintained by Hedge Fund Research. There’s nothing new or problematic about an investor buying a stake in a company, as Pershing Square did with a 9.7 percent stake in Allergan, and then agitating for a sale. ![]() Valeant lost time and risked legally questionable tactics. But with Actavis snatching the quarry, Ackman and Allergan’s owners have made out best. The $45 billion drug company’s failed tilt at Allergan alongside Bill Ackman’s Pershing Square landed a $400 million windfall. Valeant has tried a seven-month M&A experiment that boss Michael Pearson – and other corporate chiefs – should think twice about repeating. ![]()
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