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

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of