Pershing Square Activist Presentation Deck
Flawed Capital Allocation Framework: M&A
Allergan's interest in acquisitions seems to be motivated by
growth for growth's sake rather than shareholder value creation
Gregg Gilbert, Bank of America; Question on Q3 2013 Earnings Call:
"I was wondering though if you and the board are open to deals that create
economic value and add to franchise value even if they don't meet that [10%]
revenue growth threshold?"
David Pyott, Allergan Chairman and CEO; Response on Q3 2013 Earnings Call:
"Then your question on profile of potential companies, clearly, we're looking to
franchises that have growth potential because Allergan is a growth company."
David Pyott, Allergan Chairman and CEO; Q4 2013 Earnings Call:
"... we would have no interest in buying, and I'll exaggerate, a product or a
company that were only growing 2% or 3%, because all we do would be
diluting our already really strong internal performance."View entire presentation