The largest drug company deal in history has fallen apart, and it has smacked a bunch of hedge funds

Andreas Halvorsen
Andreas Halvorsen Photo by Scott Olson/Getty Images

The Pfizer-Allergan merger — a deal that would have been worth $160 billion and the largest in pharma history — has officially been called off.

Business Insider’s Porita Crowe points out that six investment banks will be missing out in more than $200 million in fees.

They’re not the only ones feeling the pain. The buyside is too.

A number of hedge funds (assuming they haven’t sold their shares) suffered losses after Allergan’s stock dropped 16% on Tuesday following scrutiny

from the US government over so-called “tax inversion” deals, which basically allow companies to move their headquarters to another country and benefit from a lower tax rate.

In this case, Pfizer would have relocated its headquarters to Ireland where Allergan is based.

Here’s a rundown of the hedge funds that owned Allergan shares.

(Note: Hedge funds have to disclose their long equity holdings every quarter in a 13F form. These filings don’t come out until 45 days after the end of each quarter. It’s possible that they could have traded in and out of those positions since that time.)

  • Viking Global (Andreas Halvorsen): 5,987,075 shares
  • Paulson & Co. (John Paulson): 5,532,600 shares
  • Third Point (Daniel Loeb): 5,400,000 shares
  • Pentwater Capital Management: 4,316,368 shares
  • Elliott Management (Paul Singer): 2,020,500 shares
  • Blue Ridge Capital (John Griffin): 2 million shares
  • Sachem Head Capital: 1,685,000 shares
  • Senator Investment Group: 1,575,000 shares
  • Farallon Capital Management: 1,275,000 shares
  • Jana Partners (Barry Rosenstein): 1,164,664 shares

As a group, these ten hedge funds saw 1.33 billion in value wiped off their stake.

Shares of Allergan fell $41.52, or -14.69%, to close at $236.03 per share on Tuesday. The stock was last down around 1.27% in the premarket at $233.04 per share.

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