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Breakingviews: Pharma's clone-like M&A

Tuesday, February 18, 2014 - 03:04

Feb. 18 - Antony Currie and Robert Cyran discuss how Actavis’ $25 bln swoop for Forest Labs borrows from recent industry deals as well as banking's buy now, integrate later mentality of the 1990s.

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So is nothing like and I speak 25 billion dollar deal -- off a shortened workweek here in the states activists is buying Forest Labs -- certainly been following Britain's compass for a while and deal. And it's a great lovely great -- double what you'll say about is that she does nothing particularly you know I think about -- -- that -- the best deals with -- faster -- going. For -- to -- so -- Sobel is having is tonight's big deal -- work mobile and so -- some of the things you think it's not a television it's -- it's there have been a lot of deals among. Her drug companies and what they've done is the company's they've gone for lower textures actions -- -- -- Ireland any -- Ireland think it'll attacks and then. What did they can buy an American company and American company can have lower taxes and investors -- that so that's another one of these deals let's -- activists arrested today. The other thing is that we've seen a lot of activist investors given to companies and there's not Carl Icahn's biggest holder for its classic opinions and attempt to send over 10% he got in there is that the -- is -- it's like a family feet and there's like -- budgeted year old from company and they want to -- comes an eight year old can't expect expect testing carried incidentally came and then. Clean up the company put a guy -- who did another deal sold or chilled out to another company. And they put him and -- -- several months later he sells a Forest Labs tonight activists and then illustrative sooner than. What many trends is that the choir stock went up as well the son of activists went up about it's about 7%. That created about 2.5 billion -- just by. But I am buying and other companies -- cut its. Put a bullet which is western usual like. You have we seen a -- this a few of these things happen when normally. The price of the company acquiring makes 2 AM -- says -- -- -- -- only the buyer over case yeah in this case the marks and say hey great you know if you by any company we love it right go out -- and our current. And indeed. Activists in the conference calls that well we're gonna do another deal probably vehemently fourteen grim minutes today I guess at this units it smacks of the banking deals America in 1990% of it is that it in this she comes along with all these very small banks and emerged that a key emerging BofA and others have been let them as deals and suddenly. He and I did it on integrate -- it is going to be an issue forget he it was a that is activists on the itself was. It was constructed by this Icelandic greater and the apparently -- -- the credit Bob Wright went on to spot a bunch of companies and just put together a lot at a course. Never actually integrated them. And then Forrest also did another couple distant several big deal so you get these companies are just acquiring a -- different companies and never actually put together tonight. And so at some point after so aside from this is kidneys for iconic -- the fat this is a delay tax rate. And border is just election meant to beef is -- to -- meeting -- surface for the industry. That's it cuts costs that's enough about all it does not and and but there's a value and that's -- I suspect you'll see more of these deals just because of -- or costs matter. All right thanks rob will be covering that deal I'm will be back with more breaking these tomorrow.

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Breakingviews: Pharma's clone-like M&A

Tuesday, February 18, 2014 - 03:04