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AbbVie Buys Allergan for $63 Billion: Was the Price Just Right?

Another day, another mega-merger. AbbVie has agreed to pay for struggling botox maker Allergan in a $63 billion cash-and-stock deal but there seems to be concern over the hefty price. Action Alerts PLUS senior analyst Jeff Marks shared his thoughts around the price tag. "I don't think AbbVie overpaid, now AbbVie is getting crushed today, clearly, investors don't like the news," Marks said. Jeff Marks also stated that he went through the press release and mentioned a few key points that stood out to him - earnings accretion, synergies, and cashflow for the new company. "When you have one stock, AbbVie, which was in a downtrend and Allergan, which was in the downtrend for awhile, putting them together, I think there's going to be some skepticism there. So I think that's what you're seeing today in AbbVie. But, again, I think that the numbers kind of create a compelling case, but we'll have to wait and see there," said Marks. AbbVie is Real Money's Stock of the Day. Related. Think AbbVie Is Overpaying for Allergan? Pfizer Offered Way More in 2015

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