ABBV - What To Do With AbbVie After The Allergan Bid
Yesterday, I wrote about the proposed Allergan (AGN) acquisition from the perspective of an Allergan shareholder. I got some questions coming from the perspective of the AbbVie (ABBV) shareholder, and today, I want to look at the transaction from that perspective. Because Allergan shareholders are potentially set to receive exposure to AbbVie, it is also relevant to Allergan shareholders. The obvious observation is the market took this acquisition really badly. AbbVie dropped hard yesterday:
Data by YCharts
After the drop, AbbVie trades at about 7.5x free cash flow, which is exceedingly