NEW YORK (Real Money) -- I have to rethink my concerns about what happens if Valeant (VRX) walks away from Allergan (AGN). In preparation for my interview with David Pyott, the CEO of Allergan, I took a look at what all of the other drug companies' stocks have done since the bid, and the answer is pretty much a big fat zero. So I figured the stock would go back to where it was while Ackman's Pershing fund was buying it up but before the offering was announced.
After listening to Pyott last night, I now think it can be higher; not necessarily as much as it is now, because you will always have disappointed arbitrageurs, but up enough that the risk reward is better than I thought.
Pyott is saying that he can do a huge restructuring to bring out value or undertake a value-creating acquisition. I don't know whether the market will like the latter, unless it is an inversion. The former could be well-received.
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