Allergan Rejects Valeant Again

Jun 10 2014 | 12:00pm ET

Valeant Pharmaceuticals International’s $53 billion offer for Allergan Inc. is still not rich enough for the latter.

Valeant, which is working with Pershing Square Capital Management on the bid, increased the offer twice late last month. But Allergan, which has said it prefers to remain independent, isn’t budging.

“We do not believe your latest proposal offers sufficient or certain value to warrant discussions between Allergan and Valeant,” Allergan CEO David Pyott wrote to his counterpart at Valeant, Michael Pearson.

That is not likely to sit well with Pershing Square’s William Ackman, Allergan’s largest shareholder, who has championed a deal and insisted that Allergan hold talks with Valeant. This week, Ackman said he had the support of a number of large Allergan investors for a deal at $180 per share, roughly the value of Valeant’s latest bid.

Ackman is also preparing a proxy fight to oust a majority of Allergan’s board later this year. The Botox-maker said the board’s vote against Valeant’s most recent offer was unanimous.

Allergan has blasted Valeant as a serial acquirer whose strategy is unsustainable. Pyott wrote that the latest proposal both “substantially undervalues” his company and “creates significant risks and uncertainties.”


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of