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Breakingviews: $100 bln merger Monday

Monday, November 17, 2014 - 03:14

Breakingviews columnists consider Bill Ackman's role in the $66 bln Actavis-Allergan deal and the denouement of Halliburton's $35 bln acquisition of Baker Hughes.

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It's a good 100 billion dollars called Monday emerges out today festival I again. It's put into play by the activist investor bill like when is being so finds little themselves and yet know the original idea which was Valium that that toughness that it was a what's going on there. So what happened was that so. Pershing square emerged in in earlier this year in the spring saying OK we've parred 10% of your company and we think we should tell you should tell yourself to Valiante this is it. Now the head with that company had to do was valid but yet yet it's the deal between pershing square buttons on and ballot was that. Pershing square would agree to you know support the valiant bid and then also they would keep their shares in dying if they sold if the company did share of self reliant. And if that if it didn't didn't work from 15% of proceeds from our back conspiracy would go to valiant and it. But it's hard to get those proceeds than it was of that couple billion dollars so Pacman get a net over two billion dollars and we're just. Nice so yes Florida is a little bit of basically he wins whoever buys. Elegant whereas whereas Palin is kind of left. Pain yet they can get it over fourteen million permanent structure here we're just obviously that but then again they need to two by companies for growth. And they had you know predicated that do this deal because it was used in that was their future buying this company were here saved tons of money is hosting great deal. Can deliver that balance sheet now that's not gonna happen okay say today Thomas as well as finally and you gonna talk more about that in your peace we have to open the other deal. This lawyer Rex is Halliburton Baker Hughes which has been a very close living so if you ask me I mean. Had a bit of added some flavor of activism involved I mean in the Halliburton. Came in wasn't happy with the response it got for Baker Hughes a cannot late Friday night and said oh well we're well or they're actually actually because he's commenced that the that Halliburton has threatened to basically run a proxy fight. Replacing all of our directors we're there terrorism if you set a bit like it you know the kind of thing that they'll lack members or certain activists to do. But of course it got them back the negotiating table right by this morning they had agreed a deal which is 35 billion dollar deal. It's like 4%. Premium level of fifty whether to run it any better in the memory you weigh what you stow the absolute value of the premium is about thirteen billion dollars I think like. On a twenty billion dollar undisturbed price. Which is about well. It's a bit of a stretch and in the numbers when we're we're we're looking at a Kevin Allison Chicago is looking at you right now but on backing envelope suggested that they were paying. They were basing giving away all of the all of the that the benefits of the synergies to the U regularly this thing but they have with some very aggressive disruptions because it says it uses more aggressive than we thought they rightly condemned and we thought somewhere in the order for billionaires which is one reason for you anyway confidence as of them little. Today yeah I mean given up what they. Gained last week as they went into this whole thing thanks so thanks robo let we will have a breaking news for you tomorrow.

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Breakingviews: $100 bln merger Monday

Monday, November 17, 2014 - 03:14