Pfizer Deal Could Be Worth $187 Million for Allergan's Saunders

Pfizer Said to Be Near Deal for Allergan
  • Performance-based shares could be valued at about $44 million
  • Deal faces regulatory hurdles from U.S. Treasury Department

Brent Saunders has a $187 million incentive to sell Allergan Plc, the company he’s run since July 2014, to Pfizer Inc. for $380 a share.

Saunders’s holdings in the Parsippany, New Jersey-based Botox maker would be worth about $23 million, according to data compiled by Bloomberg from the company’s filings. His options -- both unexercisable and exercisable -- would be valued at $97 million at the $380 price. He also has unvested restricted shares that would be worth about $23 million and performance-based shares that would be valued at about $44 million at their target.

Pfizer is in advanced talks to buy Allergan for as much as the $380 a share, or $150 billion, according to people familiar with the matter, who asked not to be identified because the discussions are private. The companies were moving toward a plan to make Saunders chief executive officer of the combined business, people with knowledge of the matter said on Nov. 11.

Mark Marmur, a spokesman for Allergan, declined to comment on Saunders’s holdings.

Saunders’s performance-based shares are based on Allergan’s stock. If total shareholder return compound annual growth rate surpasses 10 percent in the period between July 1, 2014, to Sept. 1, 2017, the equity award pays out at its target value.

The deal, which would be the largest ever for the drug industry, faces regulatory hurdles. The U.S. Treasury Department’s letter on tax inversion deals, released Wednesday, could delay the final agreement and change the terms of any transaction, another person familiar said.

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