Hedge fund makes $2.3bn from 'losing' bet

Hedge Fund

The biggest loser wins!

The New York Post reports that Botox maker Allergan has agreed to be acquired by Irish drugmaker Actavis for $66bn, or $219 per share.

The deal, announced early Monday morning, ends the months-long hostile takeover attempt of Allergan by Canadian pharma giant Valeant and its partner, activist hedge fund mogul Bill Ackman, who took a 9.7% stake in Allergan to help push their deal to fruition.

But Ackman and Valeant won’t be crying over spilled milk.

Ackman’s Pershing Square hedge fund will make $2.3bn profit on its Allergan investment, after sharing roughly $400m of profits with Valeant as per their arrangement.

Hit the link below to access the complete New York Post article:

Ackman 'loses' Allergen, pockets $2.7bn

Trading desk bonuses coming from grunts, expenses 'capped'


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