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The Pfizer-Allergan merger, a deal worth $160 billion that would have been the largest in pharma history, has officially been called off.
Business Insider’s Portia Crowe points out that six investment banks will be missing out in more than $200 million in fees.
They’re not the only ones feeling the pain. The buy side is too.
Numerous hedge funds (assuming they haven’t sold their shares) suffered losses when Allergan’s stock dropped 16% on Tuesday after scrutiny from the US government over so-called tax-inversion deals, which allow companies to move their headquarters to another country and benefit from a lower tax rate.
In this case Pfizer would have relocated its headquarters to Ireland, where Allergan is based.
Goldman Sachs recently had Allergan ranked No. 1 on its list of stocks that “matter most” to hedge funds. According to Goldman, 80 hedge funds it tracked held Allergan as a top-10 holding.
Here’s a rundown of the hedge funds that owned Allergan shares.
(Note: Hedge funds have to disclose their long equity holdings every quarter in a 13F form. These filings don’t come out until 45 days after the end of each quarter. It’s possible that they could have traded in and out of those positions since that time.)
Viking Global (Andreas Halvorsen): 5,987,075 shares Paulson & Co. (John Paulson): 5,532,600 shares Third Point (Daniel Loeb): 5,400,000 shares Pentwater Capital Management: 4,316,368 shares Elliott Management (Paul Singer): 2,020,500 shares Blue Ridge Capital (John Griffin): 2,000,000 shares Sachem Head Capital: 1,685,000 shares Senator Investment Group: 1,575,000 shares Farallon Capital Management: 1,275,000 shares Jana Partners (Barry Rosenstein): 1,164,664 shares
As a group, these 10 hedge funds may have seen $1.33 billion in value wiped off their stakes.
Shares of Allergan fell $41.52, or 14.69%, and closed at $236.03 a share on Tuesday. The stock was last down about 1.27% in the premarket at $233.04 a share.