Watson Pharmaceutical share sky rocketed April 26 after the company confirmed the rumors regarding the buyout of Swiss drug maker Actavis. The company announced that it would be paying roughly $5.9 billion for the acquisition which places Watson third in global markets.
The deal is supposed to play out like this; Watson will pay $5.9 billion cash upfront then extend certain considerations. Should Actavis reach particular goals for 2012 the stakeholders would receive 5.5 million shares of Watson common stock in 2013 valued at approximately $330 million.