Hell hath no fury like a hedge fund mogul losing money.
Billionaire hedgie Paul Singer, stung by the busted $50 billion AbbVie-Shire drug merger in October, is not taking the loss quietly.
The 70-year-old investor is considering suing AbbVie for killing the deal, he told investors in his Elliott Management hedge funds in its quarterly update.
Singer, who is still mired in a decades-long legal battle with Argentina, has a reputation for his litigious ways.
In the past, he has sued corporations and former partners — as well as countries.
"The threat of litigation is not unusual for Paul Singer," said one investor.
But even for an investor like Singer, with a reputation for suing, such a lawsuit, if filed, may seem a little over the top.
Other hedge funds that invested in Shire and were burned worse than Singer are not suing.
Singer was one of the first to cut his losses when AbbVie pulled out of the deal on Oct. 15, and the stock plunged 22 percent on the London Stock Exchange.
Elliott, which is believed to have had a $1.2 billion to $1.5 billion stake, reported selling 1.6 million shares that day.
The Shire dump may have helped his $25 billion hedge fund avoid the meltdown that hit other big Shire investors, like Frank Brosens' Taconic Capital, which fell 2.5 percent in October, and John Paulson, whose Advantage fund fell 3 percent last month.
Elliott International, in contrast, fell a half a percent and is still up more than 6 percent for the year.
But it's Singer — not Brosens or Paulson — who is considering suing.
"We are exploring our options with respect to this matter, including whether to assert claims against AbbVie for making false and misleading statements about the transaction," Singer wrote in his third-quarter investor letter, released this week.
Shire, an Irish biotech company, agreed to be bought by AbbVie in July in a tax inversion deal.
On Sept. 22, the Obama administration announced changes to make such tax deals less attractive.
"But a week later AbbVie publicly filed two letters from its senior executives, including its Chairman and CEO, stating they were 'more energized than ever' about the transaction and aiming for a 'fourth-quarter close,' " Singer wrote.
On Oct. 15, AbbVie's board withdrew its support of the deal, "citing the impact of the tax-related administrative actions taken to date as well as concerns of possible future actions by the IRS and Congress," Singer wrote in his third-quarter investor letter.
"We were surprised and disappointed by the AbbVie board's decision to change its recommendation. While the Treasury regulations reduced the attractiveness of the transaction to AbbVie, it would have been significantly accretive to AbbVie while preserving the aforementioned strategic benefits," he added.
Elliott still owns 7.9 million shares of Shire, which was one of the fund's biggest equity positions at the end of the third quarter.
Anda sedang membaca artikel tentang
Singer considers suing AbbVie for killing drug merger
Dengan url
http://makananrasaenak.blogspot.com/2014/11/singer-considers-suing-abbvie-for.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Singer considers suing AbbVie for killing drug merger
namun jangan lupa untuk meletakkan link
Singer considers suing AbbVie for killing drug merger
sebagai sumbernya
0 komentar:
Posting Komentar