Pershing Square Activist Presentation Deck
A Large Buyback at the Currently Elevated Share
Price would be Value-Destructive
► Allergan has indicated that the company is contemplating a
leveraged buyback of up to $10 billion(¹), compared to a total
buyback of $2.4 billion from 2011 to Q1 2014
► Allergan's stock is currently trading at 29x 2014E earnings per
share, vs. 18x for its peers (2)
■ Represents 24% premium over 12-month median price target of
$135 per share before initial Valeant bid
■ 82% premium over the three-year average price of $92 per
share
▸ A leveraged buyback of this scale would likely have to be
conducted at a meaningful premium to AGN's current price
(1)
(2)
Source: Interview with David Pyott (Reuters, July 1), Company filings and FactSet
Represents Allergan's maximum borrowing capacity while retaining investment-grade rating
As of July 14, 2014. Peers from Allergan's 2014 proxy (excluding Forest Laboratories)
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