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Morgan Stanley (NYSE:MS) Pitched Its Defense Services To Allergan

Boston, MA 06/19/2014 (wallstreetpr) – Morgan Stanley (NYSE:MS) is the advice-giver to the Canada based pharmaceutical company, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) in its $53 billion bid for Allergan, Inc. (NYSE:AGN). Morgan Stanley, the global financial service firm initially attempted to get appointed by Allergan. According to Allergan, Morgan Stanley is the unwanted bidder in the “house of cards.”

Emails Released By Morgan Stanley To Allergan:

Accordingly, Morgan Stanley (NYSE:MS) bankers sent emails to Allergan stating that the pharmaceuticals company was a “house of cards.” In addition, they also wrote that Valeant has an untenable business model. However, Allergan eventually planned not to appoint Morgan Stanley while Valeant did. The email exchanges between Morgan and the Botox manufacturer were done on Monday, which disclosed that the bankers were “pitching” for a resistance assignment from Allergan. It has revealed that Morgan Stanley offered suggestion as to how Allergan could successfully safeguard itself from the unsolicited suitor.

Morgan Stanley Advices Allergan:

Allergan stated that the executives of Morgan Stanley (NYSE:MS) have sent emails directly to the management team of Allergan. The emails sent by the U.S. multinational financial provider advice Allergan to share the concerns. Allergan, Inc. (NYSE:AGN) mentioned that on May 13, 2014, an email was sent to David Pyott, the chief executive officer as well as Jeff Edwards, the chief financial officer.

 In the email, Robert Kindler, the global head of Mergers & Acquisitions of Morgan Stanley commented that the company could be more hostile in going after Valeant’s business model along with its stock value. As a course of action, managing director at Morgan Stanley’s healthcare group, David Horn, followed by sending an email to Jeff Edwards on May 18, 2014.

Morgan Stanley Declined To Comment:

Mary Claire Delaney, a spokeswoman for Morgan Stanley (NYSE:MS), refused to say anything on the delivery of emails. Michael Pearson, the chief executive officer of Valeant, stated that Allergan’s revelation is an indication of desperation. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) looks ahead to establish the naysayers incorrectly, added Pearson.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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