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Laval, Québec-based Valeant originally made a $47 billion offer for Allergan last month, which the Botox maker rejected May 12.
