Discussion in 'Stocks' started by FCXoptions, Mar 21, 2016.

  1. Are any of you all playing this potential merger?$160B+Merger/11098755.html

    I read about it awhile back, but to be honest haven't really looked into it that much until today. Currently Allergan is trading at a pretty significant discount to the proposed deal. It is 11.3 shares of PFE per share of AGN. At today's prices that comes out to over a $60 premium by buying AGN.

    Obviously this tells me there is a decent amount of concern over the deal going through. I think both stocks individually are good buys, I already hold Pfizer in my retirement account, but I am thinking I might pickup AGN. If the merger goes through, at current prices it will be the equivalent of buying PFE at $24/share approx, but that will of course change depending on how long the deal takes to complete due to the dividend on PFE.

    I am wondering about playing it by shorting PFE and buying AGN. If the deal goes through it will of course do quite well, and if it doesn't I'm not sure how bad of a hit it would take, but it does appear that the potential hit would be less than the potential reward. The other downside would of course be paying the dividend on the PFE short.

    Anyways, just curious of anybody else's thoughts on this merger.

  2. [​IMG]
  3. PFE Closed the quarter on an inside Month & yet another inside week again w/ alternating Up/Down/Up/ Weekly closes
  4. newwurldmn


    On the tape, treasury going after inversions. Agn down 20%
  5. Yeah...bad day for my AGN position lol
  6. AGN has more debt than VRX and a similar marketing strategy. AGN is going to potentially fall victim to liberal probes as did VRX