Allergan Sketches Road Show to Sell Teva Stake
The company is in discussions with investment bankers and brokers to sell its Teva shares, said one person familiar with the matter
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The company is in discussions with investment bankers and brokers and plans a road show to sell its Teva shares, this person said. It may approach Teva to handle the road show, they added.
"As the Company has previously stated, Allergan will not be a long-term shareholder in Teva. The Company has registered the shares, and will look to sell the shares over the next few months in a prudent and responsible manner," a spokesman for Allergan said in an email.
In past statements, Allergan said it views the Teva shares it owns as a short-term investment, and that it intends in all likelihood to sell the shares once the lockup period expires.
Allergan’s plans to distribute the shares will make a hostile takeover bid for Teva less likely. While it is likely to increase downward pressure on the stock of Teva’s stock price, it will also disperse uncertainty around the stock, possibly boosting the confidence of investors seeking an upside in the stock currently traded in low-price levels.