A Wall Street Genius’s Final Investment Playbook
Chapter 173

Once the casting is done, what’s the next thing needed? 

An intriguing development that captures the audience’s eyes and hearts. 

And what’s the most entertaining thing in the world? 

Watching fires and fights. 

With that in mind, I planned to make use of both. 

First, I would publicly clash with Ackman, then pour fuel on the fight, turning it into a massive blaze that would engulf the entire nation. 

That was my goal. 

Of course, for now, all I had done was declare war through the 13D filing. 

‘I need to escalate this into a full-fledged war.’ 

That was the real reason I attended this meeting. 

"A full cash transaction, you say…?" 

Ackman was momentarily flustered but quickly regained his composure and continued in a serious tone. 

“The last amount we proposed was 53.3 billion dollars. It’s extremely rare for an acquisition of this scale to be conducted entirely in cash.” 

"Everett completed a $58 billion acquisition in cash just last month." 

"That’s possible in the tech industry. The pharmaceutical sector is a different story." 

"Well, isn’t this more about a company’s financial status than industry characteristics? Everett has ample cash reserves, while Valeant is likely struggling with liquidity due to its aggressive acquisitions." 

At my direct jab, Ackman’s face stiffened for a moment. 

‘He’s so easy to read.’ 

I had noticed before—Ackman wasn’t great at hiding his emotions. 

Most high-level Wall Street executives tend to be emotionally detached, making Ackman an unusual case. 

“I see.” 

Suppressing his discomfort, Ackman forced a composed smile. 

"You’ve pinpointed the issue precisely. That’s right. Valeant doesn’t have that kind of cash liquidity at the moment. That’s why we’re here—to reach a mutually beneficial agreement through dialogue." 

Despite my deliberate provocation, he still maintained his negotiating stance. 

It was an admirable level of patience. 

‘Well, I suppose that’s to be expected.’ 

Ackman would want to avoid fighting on multiple fronts. 

Since he was already locked in a battle with Icahn over Herbalife, he would prefer to resolve the Allergan issue diplomatically. 

If this were a war, it meant he sought a peaceful resolution through diplomacy rather than military force. 

But I had no intention of playing along. 

‘Who says you get to decide that?’ 

How do you wage war against someone who wants peace? 

The answer is simple. 

‘First, you cut off all diplomatic options.’ 

"Financial constraints may be a factor, but our proposed stock-swap deal is also beneficial for Allergan. Given Valeant’s high growth rate, its future value far outweighs cash." 

The foundation of diplomacy is persuasion. 

Ackman, following that principle, attempted to convince us. 

However, 

"As I said, we don’t believe in Valeant’s future. In fact, we expect it to turn into worthless paper soon." 

I turned his appeal into an insult. 

Ackman’s face darkened, and then his gaze shifted to Beckett, who was sitting beside me. 

"Mr. Beckett, do you share this opinion?" 

"I wouldn’t put it as extremely as Sean did, but I and the other board members do have doubts about Valeant’s growth potential." 

"In that case, would you allow me to dispel those doubts?" 

Still maintaining his gentlemanly demeanor, Ackman now shifted his focus to convincing CEO Beckett. 

He passionately emphasized Valeant’s strengths—its pipeline, high-profit product lineup, and strategic positioning in niche markets with little competition. 

He even pulled out financial statements in an effort to persuade us. 

‘So he’s using this approach again.’ 

This had been Ackman’s strategy in my past life as well. 

He aimed to frame the issue around Valeant’s growth potential and used an array of metrics and Excel sheets to support his argument. 

‘It was somewhat interesting back then…’ 

But this was a strategy designed to win over CEO Beckett. 

I had no intention of fighting on the battlefield Ackman had chosen. 

I needed to consider public appeal. 

My true goal was to gain widespread recognition through public opinion. 

And the public doesn’t care about financial calculations. 

Think about it. 

Imagine assembling a star-studded cast, only for the actors to sit on stage punching numbers into a calculator. 

Would the audience enjoy that? 

Not a chance. 

What captivates an audience is drama. 

The conflict between people—the human drama that unfolds. 

“No matter how much you try to persuade us, it’s pointless. The board has already reached a unanimous agreement, and more importantly, Mr. Icahn has also given his approval.” 

I cut off Ackman’s explanation firmly, bringing up the name of his nemesis, Icahn. 

Ackman momentarily froze. 

"Did Icahn propose the all-cash deal?" 

"That’s correct." 

That was a lie. 

But there was no way to verify it, and for now, shifting the blame onto Icahn was the most effective move. 

My gamble paid off. 

For a brief moment, an expression of ‘I knew it’ flashed across Ackman’s face. 

He still believed that his archrival, Icahn, was the mastermind behind all this. 

Turning to Beckett, Ackman spoke again. 

"You must be aware of Icahn’s true intentions. He’s not interested in long-term corporate growth—he’s only looking to cash out for short-term profit." 

The corners of my lips lifted slightly. 

This was exactly the turn of events I had been waiting for. 

‘So now, instead of numbers and logic, he’s resorting to instigation.’ 

The real drama—the clash between people—was finally beginning. 

"Icahn will leave as soon as he secures his profits, and when that happens, Allergan will sink alongside the cash-strapped Valeant. Surely, you haven’t forgotten the TMA disaster?" 

TMA was an airline Icahn acquired in the 1980s, infamous as one of his most ruthless takeovers. 

At the time, Icahn took out loans under the company’s name to pay out dividends, stuffing his own pockets first. 

Then, he carried out large-scale restructuring and even sold off key assets, ultimately degrading TMA’s service quality and driving its future into the ground. 

And he didn’t stop there—he pressured the company into buying back his shares at an inflated price before walking away… 

It was truly a predatory strategy, stripping the company down to its bones. 

And just now, Ackman was suggesting that Icahn might do the same thing to Allergan. 

However, I remained unfazed and calmly refuted him. 

"That was thirty years ago. Icahn has changed since then. More importantly, in this deal, he and I hold joint 50:50 decision-making power. No matter what his intentions are, I would never allow such reckless corporate raiding." 

As I firmly asserted Icahn’s supposed transformation, Beckett, sitting beside me, chimed in. 

"I don’t agree with Icahn’s past methods, but when it comes to evaluating Valeant’s value, I share his perspective." 

In truth, Beckett’s support wasn’t because he trusted us—it was simply because he despised Valeant that much. 

But what mattered was that he was on our side. 

"Our stance remains unchanged. A full cash transaction." 

"I see." 

I reiterated that there was no room for negotiation. 

Then, after a brief pause— 

Ackman’s expression shifted. 

Lacing his fingers together, he flashed a cold smile. 

"I had hoped to avoid fighting on two fronts… but it seems I no longer have a choice." 

His gaze moved from Beckett to me. 

"In a two-front war, the key is to swiftly eliminate the weaker opponent and focus resources on the remaining battle. Between Herbalife and Allergan, I believe Allergan will be the easier target. Are you absolutely sure you won’t regret this decision?" 

It was a clear threat.

In other words, it was an ultimatum—if we didn’t accept his terms, he would declare war. 

I nodded and responded seriously. 

“Since you’re being so insistent, I’ll make a slight concession. How about 99%?” 

“……” 

“If you pay 99% of the transaction amount in cash, I’ll consider it.” 

A 1% adjustment. 

It was hardly a concession—just a way to provoke him. 

Ackman seemed to have taken the bait, letting out a bitter laugh. 

“I trust you understand what’s about to happen.” 

“Of course.” 

“You’ll hear news of it soon.” 

That was exactly what I wanted. 

About a week later, just as he had warned, the news broke. 

<Ackman Attempts Hostile Takeover of Allergan… Appeals Directly to Shareholders with Tender Offer> 

Ackman had declared war. 

***

Typically, when an M&A proposal is made, the management and board of directors review it thoroughly before making a final decision. 

But what if they reject the offer? 

The acquiring party can attempt to seize control by securing over 50% of the shares without management’s approval, which marks the beginning of a hostile takeover. 

Ackman currently held 10% of the shares. 

How would he obtain the remaining 41%? 

The method was simple. 

Convince existing shareholders to sell their stocks to him.

This was the essence of a tender offer, or public stock purchase. 

[We are offering $58.5 per Allergan share, along with 0.82 shares of Valeant…] 

Now, the rules of war had become clear. 

Ackman would try to persuade shareholders to sell their stakes to him, while I had to convince them not to sell at any cost. 

The winner of this battle would be whoever won over the shareholders' hearts. 

In other words, the round I had been eagerly waiting for—the public opinion war—had begun. 

Ackman launched the first strike. 

The day after announcing his tender offer, he held a grand presentation and live-streamed it worldwide. 

[We did our best to negotiate peacefully, but Allergan refused to engage in good-faith discussions, leaving us no choice but to take this action.] 

The foundation of a public opinion war is painting oneself as the hero and the opponent as the villain. 

Ackman followed this formula precisely. 

[Allergan refused to accept any proposal other than a 100% cash payment, all because of their ridiculous claim that Valeant would soon become worthless.] 

He raised his eyebrows and emphasized his point. 

[That claim is completely false. On the contrary, Valeant represents the future of the pharmaceutical industry.] 

Another key tactic in shaping public opinion is telling the audience what they want to hear. 

The shareholders who held voting power at this moment wanted nothing more than a promise that stock prices would rise. 

Following this playbook, Ackman rattled off Valeant’s explosive growth statistics. 

[Last quarter, Valeant achieved a staggering 33% revenue increase year-over-year. This growth has been directly reflected in its stock price—rising from just $9.65 in 2008 to $140 today, an increase of over 1,000%.] 

At this point, Valeant’s stock movement resembled Bitcoin’s meteoric rise. 

And since he was offering $58.5 in cash per Allergan share plus 0.82 shares of Valeant, he was essentially tempting shareholders with both cash and Bitcoin-like assets in exchange for Allergan stock. 

[Of course, some have expressed concerns that this level of growth is unsustainable.] 

Next, he preemptively countered our likely rebuttals. 

[But these concerns stem from a fundamental misunderstanding of Valeant’s unique business model. Valeant is not just a pharmaceutical manufacturer or service provider—it is a platform that maximizes the value of its internal members.] 

Oh… this was a fresh approach. 

[To illustrate, consider Berkshire Hathaway. Its subsidiaries operate under Berkshire’s vast umbrella, sharing resources, human networks, and management expertise to create synergy. Similarly, Valeant provides a foundation for its affiliated companies to strengthen their competitive edge.] 

Essentially, he was marketing Valeant as a "relative of Buffett’s empire." 

He was framing it as a prestigious and powerful financial entity. 

Then, he pulled out another card. 

[We are confident in Valeant’s bright future. As proof, we have invested a staggering 20% of our fund’s assets into Valeant.] 

This was a common hedge fund strategy. 

He was essentially saying, "I’ve bet 20% of my fortune on this—believe in my conviction." 

Having laid out his argument, Ackman moved on to the next stage—framing the opposition as villains. 

[But Icahn and Ha Si-heon are different. Especially Icahn—he is not someone to be trusted.] 

He spoke in a grave tone. 

[I first met Icahn ten years ago, during one of the most difficult periods of my life. At the time, I had failed in my first fund management venture and was forced to liquidate my portfolio.] 

He cast his eyes downward, adopting a sorrowful expression. 

He then vividly described his encounter with the legendary figure Icahn at a critical crossroads in his life. 

[I agreed to transfer a company’s shares to Icahn in exchange for a share of its future profits over the next three years. Those shares weren’t mine—they belonged to my investors, and I had a duty to return their assets to them.] 

This was unexpected. 

Ackman, who usually relied on logic and data, was now taking an emotional approach. 

‘This might be another butterfly effect I triggered.’ 

He seamlessly transitioned into a dramatic storytelling mode, revealing an unexpected talent for it. 

[But soon after, that company was acquired, and Icahn sold his shares at a massive 30% premium. When I asked him for the agreed-upon share of the profits, he flatly refused.] 

[He argued that profit-sharing only applied to routine stock gains, not to mergers and acquisitions—a blatant distortion of the original agreement.] 

Ackman painted Icahn as a ruthless loan shark, mercilessly exposing his alleged misdeeds. 

Then, with a trembling voice, he added: 

[I protested repeatedly, but he barely acknowledged me. At the time, Icahn was a colossal figure, while I was just a failed fund manager. But I refused to back down—I took him to court. It was my duty to my investors.] 

This lawsuit ended in Ackman’s victory, and Icahn was forced to pay $9 million in damages. 

[For Icahn, $9 million was pocket change. And yet, look at his actions today.] 

A genuine sense of bitterness lingered in Ackman’s voice. 

His naturally expressive face, usually a weakness in high-stakes negotiations, was now working in his favor. 

‘So, this is how he’s using it.’ 

Because his emotions were so transparent, even in his late forties, Ackman still exuded a boyish sincerity, drawing sympathy from the audience. 

[Since then, Icahn has harbored a deep grudge against me. His involvement in this battle isn’t about shareholders’ interests—it’s about personal revenge.] 

He lifted his chin proudly, playing the role of a hero who had overcome adversity. 

[Everyone, stay focused on the objective data. The merger of Allergan and Valeant presents an unprecedented opportunity to reshape the pharmaceutical industry. We cannot allow personal vendettas to sabotage this chance.] 

Thus, Ackman’s opening attack came to a close. 

It was an impressive punch. 

He had dangled the allure of Bitcoin-like hyper-growth stocks, positioned himself as a likable protagonist, and painted Icahn as the villain. 

He even framed the shareholders as victims being targeted by Icahn’s sinister machinations. 

His expressive delivery only strengthened his credibility, and his personal story reinforced his image as a sincere, trustworthy figure. 

However, Ackman had overlooked one thing—me. 

Ha Si-heon, the man who had joined forces with the "villain" Icahn. 

‘When it comes to charm and credibility, I won’t lose.’ 

Now, it was time to see just how powerful the reputation I had built through Epicura and Theranos truly was.

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