Sterne Agee Expects Allergan to Resist Hostile Takeover by Valeant

In a report published Tuesday, Sterne Agee analyst Shibani Malhotra reiterated a Buy rating and $142.00 price target on Allergan (NYSE: AGN).

In the report, Sterne Agee noted, “We believe that Allergan will likely do all it can to resist a hostile takeover by Valeant. The company, however, has now been put ‘in play' and management would need to take transformative action in order to keep the company independent. This afternoon, the Wall Street Journal and other media reported that Valeant (VRX, $126.01, Not Rated), along with Pershing Square intends to make a hostile bid to purchase Allergan for a total price of over $45bn, representing at least 12.5% upside to current valuation. Per the news reports, the offer would be made up of $15B in cash with the rest in stock. Additionally, the acquirers expect to see $2.5 billion in cost savings from the deal.”

Allergan closed on Monday at $142.00.