Pershing Square Activist Presentation Deck
Independent Investment Research Validates Pershing
Square's Valuation Methodology
J.P.Morgan
VRX/AGN
Revised Bid Further Increases Odds Of A Deal
Moving Forward - ALERT
• Revised terms value AGN at roughly $180 on the current VRX
share price and we see further upside to the extent VRX shares
trade up to reflect merger accretion. Under the revised terms, today's
updated offer values AGN at roughly $180/share, a level our recent
survey suggests would be an acceptable takeout value. We now estimate
accretion would be in the range of $1.75 to VRX's 2016 EPS, implying
proforma 2016 earnings of roughly $13.20/share and pro forma leverage
of-4x. Even assuming no multiple expansion from VRX's unaffected
standalone 2016 EPS multiple of 11x-11.5x would imply an AGN
takeout value in the mid-$190s and a VRX share price of $145-$150.
We ultimately believe VRX's multiple would trade above this range
assuming a successful deal given the high-growth, durable assets in
AGN's portfolio.
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North America Equity Research
30 May 2014View entire presentation