Friday, 28 October 2016
Last updated 5 hours ago
May 29 2014 | 12:19pm ET
Valeant Pharmaceuticals International has increased its offer for Allergan Inc. by 7%, offering more cash and additional payments in a deal backed by Pershing Square Capital Management.
Valeant increased its offer to nearly $50 billion. The Canadian company also increased the amount of cash in the deal by $10 per Allergan share, with the rest payable in Valeant shares.
The higher offer appeared to disappoint investors, which sent shares of both companies down. Allergan, which rejected Valeant’s earlier approach, said it would consider the new offer, which adds contingent value rights worth as much as $25 per share, based on the success of Allergan’s experimental new blindness drug, Darpin.
Valeant’s efforts are supported by Pershing Square, which acquired a 9.7% stake in Allergan with Valeant’s help. The two are now pursuing a non-binding shareholder referendum in favor of the pact.
“Allergan shareholders want this deal to occur, but they want a higher price and the optionality on Darpin,” Valeant CEO Michael Pearson said. “We think the offer we made this morning address both of those concerns.”
Pershing Square chief William Ackman attended Valeant’s announcement but did not comment.