Bausch Health (BHC, Financial) has announced an update to its proxy statement, originally issued on April 2, ahead of its annual shareholders' meeting scheduled for May 13. The company revealed additional details about the economic interest held by Carl Icahn (Trades, Portfolio) and his affiliates, which now covers approximately 34% of Bausch Health's outstanding common shares. This includes 34,721,118 shares directly owned and equity swap agreements covering 90,720,000 shares, scheduled to mature on February 28, 2028.
The company's Board of Directors instructed their General Counsel to conduct an in-depth review of equity swap positions held by Icahn and bond investments made by John Paulson (Trades, Portfolio), the Board's Chairman. To ensure impartiality, Sidley Austin was engaged as independent counsel. They presented their findings to the Board on April 9. Despite requests, Icahn did not provide copies of the swap agreements but disclosed important details, such as the swaps' terms and the fact that they do not grant voting rights nor allow for physical settlement.
John Paulson (Trades, Portfolio), who previously acquired $50 million in Bausch Health bonds with prior approval, is taking steps to prevent conflicts of interest. Although his bond purchase did not necessitate disclosure under regulatory requirements, Paulson intends to sell these bonds to affirm his commitment to shareholder alignment.
Additionally, Bausch Health reaffirmed a shareholder rights plan established on April 14. This plan aims to protect the company from hostile takeover attempts by limiting any single entity's ownership to under 20% of the common shares without adhering to specified exemptions. Such measures are designed to prevent detrimental acquisition strategies that might disadvantage shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Bausch Health Companies Inc (BHC, Financial) is $8.25 with a high estimate of $12.00 and a low estimate of $5.00. The average target implies an upside of 74.79% from the current price of $4.72. More detailed estimate data can be found on the Bausch Health Companies Inc (BHC) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Bausch Health Companies Inc's (BHC, Financial) average brokerage recommendation is currently 3.2, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Bausch Health Companies Inc (BHC, Financial) in one year is $9.23, suggesting a upside of 95.55% from the current price of $4.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Bausch Health Companies Inc (BHC) Summary page.
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