Bill Ackman, CEO at Pershing Square Capital, and Michael Pearson, Chairman/CEO at Valeant Pharmaceuticals, spoke with Bloomberg Television’s Stephanie Ruhle and Erik Schatzker today about their joint bid for Allergan and explain how and why they partnered for the deal.
When asked if he is a corporate raider, Ackman said “No, no one is being raided. Actually what we’re doing is we’re helping facilitate a transaction between two companies for the benefit of the shareholders.” On whether Allergan would feel the same way, he said “I don’t know, you have to ask them.”
“The entire pharmaceutical industry is changing. There is a dynamic happening. Why is there so much opportunity for synergies? And the answer is there is a lot of costs in this industry. It’s one of the few industries which has not been forced to operate with the same kind of economic discipline as other industries. And I think that Mike [Pearson] and his team had been a driving force in leading the charge and making this a much more shareholder-oriented industry and making this a much more profitable industry.”
Ackman: Allergan Not Being Raided in Valeant Deal video below…..
Source: Bloomberg Television
On Herbalife, Ackman said:
“I don’t think this stock gradually goes to zero. I think it’s more of an overnight phenomenon. You have a criminal investigation in the Department of Justice. The FBI have launched a criminal investigation….For the FDC to go to a formal investigation here with the vote of the commissioners – what they’re telling the market is, they certainly see some evidence of serious problems at the company. And the FDC’s track record of going after pyramid schemes is pretty much, they’ve got about 100% batting average.”
*DOESN’T THINK HERBALIFE STOCK GRADUALLY GOES TO ZERO
*HERBALIFE DEMISE `MORE AN OVERNIGHT PHENOMENON’; INVESTIGATIONS SERIOUS