Friday, May 30, 2014
MoFo has posted a brief overview of activist stategies in the context of the merger space. It comes down to three basic strategies:
1. Challenge an announced deal in an effort to force the board to regnegotiate for a marginally higher price (e.g. Dell/Icahn).
2. Chase an appraisal remedy in an announced target (e.g. Dole/Merion Investment Management).
3. Try to put a company in play through an unsolicited offer ... and pray someone else comes along to top you (e.g. Icahn/Clorox).
This is obviously not an exhaustive list. What were are witnessing in the Pershing Square/Valeant/Allergan bid is an interesting twist.