Allergan, the maker of Botox is supposedly cutting about 13% of its workforce to become more cost effective and efficient as it fights a hostile take over bid from Valeant Pharmaceuticals. The company reported its plans to cut down about 1500 of its employees and 250 vacant positions as it aims to focus on its “high value” opportunities, on Monday. According to Allergan this strategy will yield annual pretax savings of about $475 million in 2015.

Interestingly, Allergan announced the cuts the same day they revealed their second quarter results which seem to have surpassed the expectations of the analysts. CEO David Pyott told analysts during a conference call that the results were an indication that the company was on the right track and the announced actions would take them further ahead.

The takeover certainly isn’t big news since Allergan has rejected several offers in the past from Valeant Pharmaceuticals and others like Bill Ackman’s Pershing Square Capital Management. In fact, the latest offer amounts to $53 billion in cash and stock! Another important fact is that Valeant has promised to cut down costs of its own if Allergan agrees to co-operate. Bill Ackman told CNBC that Allergan should have taken these steps some time ago and the shareholders have been asking this for some time. Bill Ackman himself, has a 9.7% stake in the company. Ackman expressed disappointment in Allergan’s decision to fight off the takeovers since he seems to think that their opportunities have been curtailed as a result of standing alone.

He is reported to have said. “Allergan can only achieve so much as a stand alone company.” Allergan on the other hand, has now resorted to ‘poison pill’ defenses and Pyott seems to think that Valeant’s offer is unreasonably far from the “intrinsic value” of their company. There is bad blood between the two companies and they have been publicly criticizing each other about the takeover since April. Valeant has even recently complained to the Securities and Exchange Commission and authorities in the Canadian province of Quebec about Allergan’s false statements regarding Valeant’s business.

Valeant Chairman and CEO J.Michael Pearson believes that they are obligated to take action against Allergan’s attempts to ‘mislead investors and manipulate the market for Valeant stock.” Allergan however claims the statements to be true and responded by an email, asking Valeant to reveal the ongoing activities of their business. Allergan said on Monday that it expects Botox to deliver net sales from $2.2 billion to $2.28 billion. The use of Botox itself is surrounded by much controversy. It is a product used to make aging lines on the skin smoother but its also known to treat neck spasms, eye muscle disorders, migraines and some other conditions.

Recently in China, authorities are keeping a close eye on the meat dealers since an accusation were made that they were involved in providing expired products and naming them as fresh. This action has disturbed the foreign fast food chains in China. This news has spread after a private investigation done by a local television which clearly showed that expired meat is again labelled as fresh and sent to different popular fast food chains of China.

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China’s State Food and Drug Administration have planned to check all eight main land meat plants. It ordered to check Shangai Plant which has been closed by local supervisors. Several other wide-spread checks are being made on different meat supplier instead of doing it on entire China meat processing industry.

OSI- an Illinois based company has already apologized to both the authorities and its customers. Star Bucks is now tied up with Yum brand’s KFC and Pizza Hut to get products directly from the meat plants rather than purchasing it from the untrustworthy meat suppliers. All the coffee chains said that this action is merely affecting one item which is chicken apple Panini sandwich. The Husi processing plant was responsible for supplying meat to foreign fast food chain in Shangai and McDonalds in Japan for its one-fifth chicken Mc nuggets. McDonalds has decided to stop taking Mcnuggets from meat plants of China and Thailand. It is certainly difficult for foreign food chains to change their meat suppliers on such a short notice.

Asian share market jumbled high on Tuesday whereas, movements were low in Tokyo. Stock markets of India and China were in the lead with a gain, at the same time MSCI’s broadcast of Asian pacific share outside Japan added 0.2 percent. European stocks were an inch up, in opposition of previous dip.

Hong Kong’s Hang Sang is recovering 1.3 percent after facing the fall from last three sessions.

nikkei+stocks+xxx

Barack Obama, U.S president is still in support of Israel. He says that it’s a right of Israel to protect itself from the Human assault. On the other hand, he also showed concern for the people of Palestine. He said that he had sent John Kerry to the Middle East in order to resolve this dispute.

Obama claimed that Russia has a very great influence over separatist therefore; they are not allowing them to remove bodies from the crash site.
In the mean time, demands has been made by United Nations Security Council for international inquiry on the last week’s Malaysian flight accident and ask the country to make sure that the veracity of this case should be maintained.

The U.S economic report remained light today with investors looking at customer’s price rises and home sales to get an idea about the economy of upcoming cruel winter. Some companies like Coco-cola, DuPont and McDonald’s are going to announce their quarterly results before the opening bell.

Allergan, the maker of Botox is supposedly cutting about 13% of its workforce to become more cost effective and efficient as it fights a hostile take over bid from Valeant Pharmaceuticals. The company reported its plans to cut down about 1500 of its employees and 250 vacant positions as it aims to focus on its “high value” opportunities, on Monday. According to Allergan this strategy will yield annual pretax savings of about $475 million in 2015.

Interestingly, Allergan announced the cuts the same day they revealed their second quarter results which seem to have surpassed the expectations of the analysts. CEO David Pyott told analysts during a conference call that the results were an indication that the company was on the right track and the announced actions would take them further ahead.

The takeover certainly isn’t big news since Allergan has rejected several offers in the past from Valeant Pharmaceuticals and others like Bill Ackman’s Pershing Square Capital Management. In fact, the latest offer amounts to $53 billion in cash and stock! Another important fact is that Valeant has promised to cut down costs of its own if Allergan agrees to co-operate. Bill Ackman told CNBC that Allergan should have taken these steps some time ago and the shareholders have been asking this for some time. Bill Ackman himself, has a 9.7% stake in the company. Ackman expressed disappointment in Allergan’s decision to fight off the takeovers since he seems to think that their opportunities have been curtailed as a result of standing alone.

He is reported to have said. “Allergan can only achieve so much as a stand alone company.” Allergan on the other hand, has now resorted to ‘poison pill’ defenses and Pyott seems to think that Valeant’s offer is unreasonably far from the “intrinsic value” of their company. There is bad blood between the two companies and they have been publicly criticizing each other about the takeover since April. Valeant has even recently complained to the Securities and Exchange Commission and authorities in the Canadian province of Quebec about Allergan’s false statements regarding Valeant’s business.

Valeant Chairman and CEO J.Michael Pearson believes that they are obligated to take action against Allergan’s attempts to ‘mislead investors and manipulate the market for Valeant stock.” Allergan however claims the statements to be true and responded by an email, asking Valeant to reveal the ongoing activities of their business. Allergan said on Monday that it expects Botox to deliver net sales from $2.2 billion to $2.28 billion. The use of Botox itself is surrounded by much controversy. It is a product used to make aging lines on the skin smoother but its also known to treat neck spasms, eye muscle disorders, migraines and some other conditions.

Recently in China, authorities are keeping a close eye on the meat dealers since an accusation were made that they were involved in providing expired products and naming them as fresh. This action has disturbed the foreign fast food chains in China. This news has spread after a private investigation done by a local television which clearly showed that expired meat is again labelled as fresh and sent to different popular fast food chains of China.

China’s State Food and Drug Administration have planned to check all eight main land meat plants. It ordered to check Shangai Plant which has been closed by local supervisors.  Several other wide-spread checks are being made on different meat supplier instead of doing it on entire China meat processing industry.

OSI- an Illinois based company has already apologized to both the authorities and its customers. Star Bucks is now tied up with Yum brand’s KFC and Pizza Hut to get products directly from the meat plants rather than purchasing it from the untrustworthy meat suppliers. All the coffee chains said that this action is merely affecting one item which is chicken apple Panini sandwich. The Husi processing plant was responsible for supplying meat to foreign fast food chain in Shangai and McDonalds in Japan for its one-fifth chicken Mc nuggets. McDonalds has decided to stop taking Mcnuggets from meat plants of China and Thailand. It is certainly difficult for foreign food chains to change their meat suppliers on such a short notice.

Allergan Inc, on Monday announced that it is planning to cut down 13 percent of its work force, which include job of 1500 workers, in order to increase profits over the next six years. This job cut would not have an effect on the main plant that is located in West port and co Mayo, which has a staff of 900 workers. This will help the organization in convincing investors that a standalone company has a better value. It will facilitate them in making 20 percent growth between the time periods of 2014-2019. The company had expected a 2014 profit of $5.64 to $5.73 per share, with earnings growth of 20 per cent to 25 per cent in 2015.

Valeant, the rival of Allergan offered $52 billion for the company but Allergan refused. They said that the acceptance of that proposal will affect the development of the company and it was not in the best interest of share holders. On the other hand, Valeant was saying that they will increase the profit by cut cost and now Allergan is saying that we can do it by ourselves as well.

According to, JPM Morgan analyst, Chris Scot, this cut down is of 5 to 10 percent which is more than expectation. Consequently, the company should deserve superior appraisal. This reformation will take away 250 vacant positions with it and will give guarantee earning of 10 percent shares in 2016

Asian share market jumbled high on Tuesday whereas, movements were low in Tokyo. Stock markets of India and China were in the lead with a gain, at the same time MSCI’s broadcast of Asian pacific share outside Japan added 0.2 percent. European stocks were an inch up, in opposition of previous dip.

Hong Kong’s Hang Sang is recovering 1.3 percent after facing the fall from last three sessions.

Barack Obama, U.S president is still in support of Israel. He says that it’s a right of Israel to protect itself from the Human assault. On the other hand, he also showed concern for the people of Palestine. He said that he had sent John Kerry to the Middle East in order to resolve this dispute.

Obama claimed that Russia has a very great influence over separatist therefore; they are not allowing them to remove bodies from the crash site.
In the mean time, demands has been made by United Nations Security Council for international inquiry on the last week’s Malaysian flight accident and ask the country to make sure that the veracity of this case should be maintained.

The U.S economic report remained light today with investors looking at customer’s price rises and home sales to get an idea about the economy of upcoming cruel winter. Some companies like Coco-cola, DuPont and McDonald’s are going to announce their quarterly results before the opening bell.