It's a bit self-serving for a CEO to call weakness in his company's stock price "baffling," as Allergan CEO Brent Saunders did on the company's fourth quarter earnings call Monday. But Saunders may have had a point.
Allergan is trading at about $283 per share, a 16 percent discount to the implied $337 a share Pfizer plans to pay for it in a complicated tax-inversion deal (Allergan is technically buying Pfizer in a reverse merger). By every indication the deal is still on track to close in the second half of this year. Yet such a gap has been persistent since news of it broke, sometimes hitting 20 percent.