Orange County Business Journal

Valeant, Ackman Hike Allergan Bid Again

Vita Reed Monday, June 2, 2014

Valeant Pharmaceuticals International Inc. today added more cash to its hostile takeover bid for Irvine-based Allergan Inc.

Valeant’s latest offer includes $72 per share in cash for each share of Allergan stock, up from a $58.30 cash portion announced on Wednesday. Valeant’s offer of 0.83 shares of its own stock for each share of Allergan is unchanged.

The new bid is worth some $53 billion, based on Thursday’s closing prices for Valeant.

Investors recently surveyed by JP Morgan indicated that Valeant should raise its offer for Allergan to a range of $53.5 billion to $59.5 billion.

Allergan shares were up today 5% to a market value of $49.6 billion before trading was halted. Valeant is up 2% to a market value of $44 billion.

Valeant’s newest offer came in a press release issued by activist investor Bill Ackman, whose Pershing Square Capital Management LP owns 10% of Allergan.

Ackman said that the new offer was contingent on Allergan negotiating in good faith and that Pershing Square would forgo taking any cash in the deal.

Laval, Québec-based Valeant originally made a $47 billion offer for Allergan last month, which the Botox maker rejected May 12.