Canada-based Valeant Pharmaceuticals International Inc., which is attempting a hostile takeover of Irvine-based Allergan Inc., got a lift in early trading today after it released a preview of its results for the current quarter.
Allergan is fighting off the hostile bid from Valeant and activist investor Bill Ackman’s Pershing Square Capital Management LP.
Valeant said that it expects to beat consensus revenue estimates of $297.1 million when it reports third-quarter results on Oct. 20, while its profit, excluding charges, would be stronger than previously estimated.
Shares of Valeant rose 8% to a market value of $42.1 billion. The hike put the value of its bid for Allergan at about $52.2 billion—on par with Allergan’s market capitalization after a 4% increase in its own shares in early trading today.
Valeant Chief Executive J. Michael Pearson also sent a letter to Allergan management indicating a desire to “take the temperature down” and its willingness to hold face to face talks.
“We are committed to this transaction. While we would much prefer avoiding a three-month proxy contest, we will pursue it if we need to,” Pearson wrote.
Allergan Chief Executive David Pyott responded: “While we acknowledge your effort as a positive engagement, we continue to conclude that Valeant’s offer is grossly inadequate and substantially undervalues Allergan, from both the outset of this matter and particularly in consideration of the enhancements Allergan recently made to its anticipated business results.”