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Political Viagra

Pfizer-Allergan gets no support from scaredy arbs

Neil Unmack 

Neil Unmack Pfizer's merger with Allergan ought to create easy profit for traders. The drug-makers' shares are trading far below the prices implied by Pfizer's all-stock offer, as if the merger were going to create no value. Yet the arbitrageurs who exploit such gaps are staying away. They have little taste for massive deals - especially ones that have politicians on the warpath. The combined market capitalisations of Pfizer and Allergan, based on what the companies call their "unaffected" price on October 28, was approximately $332 billion. By the time the shares closed on ...

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First Published: Tue, November 24 2015. 21:32 IST
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