.3683 times 270.31 plus129.33. If so then seems agn should be selling higher than current, even considering arbitrage considerations deal not going thru etc.
Thanks for your post. The deal seems too good to be true, unless something messes up the deal and AGN just plunges in value. Then it is not good to buy the stock. Better to buy nearer the close date to avoid tying up money in this as well.
If you don't understand the implications of your actions it's probably best not to take them.
so this leads, duh, to the conclusion, that one should buy as much AGN as possible, except for the risk of the deal falling apart?
Thank you for the information. It was confusing to me but you explained it very well. Thanks again
You are incorrect about the deal. AGN shareholders will receive .3863 shares of ACT plus $129.22 cash. You must hold AGN at the close of the deal to get the deal. If you sell before that, you will get what ever AGN is trading for at the time of the sale. $219 pricing was based on the previous close prices (11/14) for ACT and AGN, when the deal was announced on the morning of 11/17. ACT is now trading for $265, so the deal now makes AGN stock worth $226 at the time of this posting. AGN stock is trading at a discount due to lack of understanding; fluxuating ACT price affecting the percentage of stock in the stock & cash deal; the remote possibility of another hostile buyer; the remote possibility of not closing or delayed closing and remote possibility of headline stock risk. Lastly, you are correct about "anybody can buy AGN now and receive the deal", providing they are holding AGN at the close of the deal. Long term shareholders get the same deal as short term shareholders, pre or post announcement - all the same. You are a long term shareholder so you got it cheaper - good for you!
$219 price of AGN was based on the previous close price of ACT on the day of the buyout announcement of 9/17. That previous close price was $243.77 on Friday, Nov. 14th. Math: 243.77 x .3683 = 89.78 plus $129.22 = $219.00 The deal is viewed very highly profitable by the street to both companies in print and as follows: ACT stock went as high as 255.51 on Nov 17 and closed at 247.98. Since then, ACT has gone as high as $270, not lower than 257 and currently consolidating at 265. Based on $265 ACT price, that makes AGN deal now worth $226.87 per share. If the deal were closing today - that's what AGN shareholders would get. The deal is going to close in March 2015. We are in the strongest three months of the year. ACT is the largest generic drug maker and seller. The 6 mo period between Oct. 1 and April 1 is the strongest for medicine sales of the year - particularly Nov thru Feb. Aided by seasonal strength and blockbuster sales, ACT and AGN will both report their strongest quarter and annual earnings reports ever, before the deal closes. This investor believes that ACT stock price will go much higher and has no chance of dropping (barring some global catastrophe or news headline that creates panic but doesnt truly relate) below the 11/14 pre-announcement close of 243 which equals 219 for AGN. Analysts price targets for ACT are in the mid to high 300's. AGN is currently trading at a huge discount due to stupid headlines regarding investigations to adequately shop AGN - analysts have a price target of 235. This investor predicts that while it is possible another buyer may emerge and offer a higher price, that ACT and AGN make the most successful, financially healthy and most profitable merger of all. This investor believes ACT earnings reports will drive ACT stock price higher and therefore will drive AGN stock price higher before the deal closes. All information is public, but you must find it and READ it!
Sentiment: Strong Buy
.3683 shares of ACT plus $29.22 in cash. Deal expected to close quickly - March 2015. ACT is buying AGN, but according to the SEC filing, the final company will be called ALLERGAN.
so... they say the deal for shareholders will be around 219 either way, but my question is when was the time period for buying agn to get the deal. I mean I have been holding this for a long time but does that mean anybody can buy now at 209 and still get the 219 deal when they make the deal sometime in the 2nd quarter? Sounds too good to be true
Really bored with ALLERGAN right now! Ultimate Stock Alerts (please google them now) just gave me some wallet-stuffing advice
Only fly in that ointment is if the ACT price upon close of deal is less that 265.
Millennium Healthcare (MHCC) just reported its Sep quarter revenues at $6.3 million versus $489,000, a 1,200% increase.
Because Millennium’s diagnostics are preventive, FDA approved, reimbursable and cost patients little to nothing, and because they add significant income for physicians, sales are beginning to increase exponentially.
Millennium’s gross margins are exceptionally high as the equipment and associated costs typically pays for themselves in the first 30 days of installation.
Millennium’s network is growing dramatically.
$6.3 million was achieved with only a small number of Millennium’s the current 1,300 physician offices.
There are over 30,000 primary care offices.
Millennium has the potential to sign a large number of the 30,000 plus offices.
At 40 cents, Millennium shares are a ground floor opportunity.
Shares are exceptionally cheap today because the company has paid many professional fees with shares of stock that have depressed shares prices because they have been sold over the past several months.
Invest a few minutes of your time to read the 10Q for yourself and confirm an exceptional opportunity.
MHCC is a very strong buy!
Sentiment: Strong Buy
Or something else. The truth is, Pyott is a man who turned AGN around from a failing eye care little enterprise into a super organic growth powerhouse within the pharma and med device industry. He is a champion finally ending up achieving 66bn for his company and as a testament to his prowess, the company paying that 66bn has seen its share price rocket on foot of the acquisition announcement.
Is that the legacy of a naive man? Perhaps he had particular reasons to sell at that time regardless of the price. Truth is, no one on this board knows for sure. But look at the facts rather than the conjecture and stop making idiot remarks. It's not actually Pyott you are showing up.