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Valeant Pharmaceuticals International, Inc. Message Board

  • buysvalueact buysvalueact Apr 2, 2013 9:58 AM Flag

    A Test For Pearson and Team...

    Pearson used to say that he would not get into bidding wars. If Pearson does not walk away then that is a sign that they are more desperate for deals then they should be.

    Let's hope that VRX keep their discipline on this transaction.

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    • If they walk away, will the stock take a hit if Obagi was supposed to be accretive from day one? If they get into a bidding war that will be bad too. I imagine, the BoD of Obagi have to entertain the new bid due to fiduciary responsibility.
      Any response from Valeant yet?

      • 2 Replies to sanmo1300
      • Here is how i look at it - If a company is trading at X and then announces some news that makes the stock go up by Y, then the market expects that the news will add Y in value to the company.

        So if VRX gets a great deal on an acquisition and the stock goes up, then that particular deal and the price for which the deal is negotiated adds that much value.

        If VRX then has to raise the price of the acquistion, then it will create less value and hence the stock should go down.

        Now if VRX loses their reputation as a firm that will not overpay, then that will cost them lots of money over time in other acquistions.

        They need to let this deal go and take the hit on the stock price. I am sure that there will be a breakup fee as a consolation prize.

        If they get into a bidding war, then it is a sign of desparation to do deals... which would be a VERY bad sign indeed.

      • I Wonder If VRX Owns Many Shares Of Obagi? If Any.

 
VRX
236.12+1.22(+0.52%)Aug 28 4:01 PMEDT