Baupost's Klarman Loses in Allergan Deal While Tepper Gets a Win
(Bloomberg) -- The lifeline thrown to Allergan Plc investors looks like a loss for one investing legend -- and a gain for another.
Seth Klarman’s Baupost Group stands to lose about $100 million based on AbbVie Inc.’s offer price for the botox maker. David Tepper’s Appaloosa Management would gain about $87 million, according to regulatory filings.
Baupost owned 4.8 million Allergan shares at the end of the first quarter at a cost basis of $208.61, data compiled by Bloomberg show. Under the deal announced Tuesday, investors in the company would get $188.24 a share in cash and stock.
Klarman initiated the position by purchasing a $461 million stake in the first quarter of 2016. Back then, Allergan was on the verge of a merger with Pfizer Inc. That deal fell apart and the shares plunged 22% during the final nine months of 2016.
Tepper’s Appaloosa held a stake of 3.13 million shares in the first quarter at a cost basis of $160.61 a share.
That gain didn’t come easy. Over the last year, Tepper has waged an activist campaign against Allergan, calling for the company’s board to separate the chairman and chief executive officer roles. Tepper has also been critical of the company’s strategy.
Representatives for Baupost and Appaloosa weren’t immediately available to comment.
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