Allergan tells shareholders to reject Valeant deal

Allergan, the maker of Botox, said Monday that Valeant Pharmaceuticals' hostile takeover bid for the company is "grossly inadequate" and that shareholders should reject it.

Allergan said the $53 billion bid from Valeant undervalues the and is not in the best interest of Allergan's shareholders.

Valeant, a Canadian drugmaker, first offered to buy Irvine, California-based Allergan Inc. in April, and has increased its original bid of about $45.6 billion several times, only to be rejected. Valeant teamed up with activist investor Bill Ackman's Pershing Square Capital Management for the bid.

On Friday, Valeant said it was taking its deal directly to Allergan shareholders and allowing them to trade in their stock for 0.83 shares of Valeant and $72 in cash, or another combination.

Allergan's CEO David E.I. Pyott said in a statement that the company can increase shareholder value more than Valeant's bid can.

Shares of Allergan slipped 31 cents to $165.01 in morning trading Monday. Valeant Pharmaceuticals International Inc. shares fell $1.26 to $120.67 in morning trading.

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Valeant planning hostile bid for Allergan

Jun 17, 2014

Valeant plans to take a buyout offer for Allergan directly to its shareholders this week, as the Botox maker continues to rebuff its proposals that have risen as high as $53 billion.

Recommended for you

Humiliation tops list of mistreatment toward med students

12 hours ago

Each year thousands of students enroll in medical schools across the country. But just how many feel they've been disrespected, publicly humiliated, ridiculed or even harassed by their superiors at some point during their ...

Surrogate offers clues into man with 16 babies

20 hours ago

When the young Thai woman saw an online ad seeking surrogate mothers, it seemed like a life-altering deal: $10,000 to help a foreign couple that wanted a child but couldn't conceive.

Nurses go on strike in Ebola-hit Liberia

21 hours ago

Nurses at Liberia's largest hospital went on strike on Monday, demanding better pay and equipment to protect them against a deadly Ebola epidemic which has killed hundreds in the west African nation.

ALS Ice Bucket Challenge arrives in North Korea

Aug 31, 2014

It's pretty hard to find a novel way to do the ALS Ice Bucket Challenge by now, but two-time Grammy-winning rapper Pras Michel, a founding member of the Fugees, has done it—getting his dousing in the center ...

Cold cash just keeps washing in from ALS challenge

Aug 28, 2014

In the couple of hours it took an official from the ALS Association to return a reporter's call for comment, the group's ubiquitous "ice bucket challenge" had brought in a few million more dollars.

User comments