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Breakingviews: Ackman the auctioneer

Wednesday, November 12, 2014 - 03:14

Breakingviews columnists wonder what activist Bill Ackman hopes to gain from targeting Zoetis, the pet-health group spun off by Pfizer last year.

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Activist investor bill act manipulated killing it from the Salem Al again to somebody he's the go to bed with Valiante trying to get itself. Throw it but his latest target and many in his latest note is that reaches the pet health. Outfits but for reprisal Austin. Rob is really the obvious why this company needs to be sold to. I mean if you think about it Pfizer said OK doesn't make sense for big pharma companies own those companies are gonna stated that. They shopped it around and looked Kazaa and a couple of other pharma companies have and we knew it's they may be combining them together would yield some savings. They were an interest that that price that they floated off. And now it's up it's up substantially thing it's up quite a bit and from the the price that it ties are sold so if someone else came along and hated the premium maybe they'd be paying. Probably at least twice as much as supplies are shopping it around for. It's like you Saturday you let's say there's a barn that's even willing to spend double what they could've out of four last year because. Theater you know emanates picked up in out boulder ambition victories of money who knows maybe his. Actually fire up there. It's not clear. Why this is the case for activism I mean in way don't Lachlan you know we haven't seen his thesis yet if there is one bright political calculation like an investment banker than he is an activist mean normally show up and say. Break up this company management stinks. Whatever but I mean by all accounts sort of has been pretty good business growing fairly well the stock has done okay. So he's showing up and saying sell this company. Really setting up and say OSS meets Amy you're right we haven't seen this these this example say it's undervalued we don't know exactly what that means yet in terms of putting us over. If we assume that one of the options as to sell it. That that we have this question and there's this little wrinkle is to run it. I believe on some screens of your valiant as we know is is this acquisition machine. Of some screens. Companies valiantly by this. This this by the spill there it is as it has appeared. Now at the hatch hit it's it's more plan that. Pacman when his presentation originally when he when he took the stake Allergan he'd he'd give this long long presentation like Pacman does like 200 slides on. And why dying was such a great company you listen to all the companies that might interest it one that was the right so it's it's it's clear he's got a list this that a pagers and. Katrina saudis and they like shut up so late push companies to sell itself because he knows as a buyer out there that. That is played is going up like pharmaceutical companies and today and it looks like in particular value may wind up losing out on Allergan. Because is another bit gentler from Travis so. And this could be his could be similar situation could be you know valiants desperate and it company well they've they may be instance Arenas who don't have the price. And there are other potential buyers to like fire for instance is gonna get a lot of money from sonics plastics business they may be institute at the price though it's it's hard to see why they've been. Interest and okay we'll leave it that things guys will follow the like from the activist sort of maybe be auctioned it. It's as as these complicated stories unfold and we liberal breaking news for you tomorrow.

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Breakingviews: Ackman the auctioneer

Wednesday, November 12, 2014 - 03:14