Valeant Pharmaceuticals Plan Improved Allergan Bid
Valeant yesterday confirmed that they are planning on making an improved, bigger offer for Allergan after their initial unsolicited $46 billion takeover offer was rejected.
US pharmaceutical company, Allergan, who are best-known for their Botox, rejected Valeant and investor Bill Ackman’s Pershing Square Capital Management’s offer earlier this week, commenting that the offer substantially undervalues the company “and creates significant risks and uncertainties for the stockholders.”
David Pyott, Allergan’s chief executive, added that the board “believes that the Valeant business model is not sustainable,” as it “runs counter to Allergan’s customer-focused approach.”
Michael Pearson, Valeant’s chief executive commented that “we remain resolute in consummating a merger with Allergan” and based on feedback from the Allergan’s stockholders, Pearson revealed that a webcast has been arranged for May 28th where the company “plan to improve our offer.”
Pearson commented that the confirmation that Valeant plan to propose an increased takeover bid on May 28th “demonstrates our commitment to getting this deal done,” adding that Valeant “are prepared to pay a full and fair price, but, consistent with our track record, we will remain financially disciplined.”
Michael Pearson concluded by noting that Valeant “will not stop our pursuit of this combination until we hear directly from Allergan shareholders that you prefer Allergan’s ‘stay the course plan’ to a combination with Valeant.”
After the announcement by Valeant, Allergan’s shares increased 1.2 percent to $161.68 in New York, while Valeant’s own shares crept up 0.4 percent to $130.63.