BioCentury
ARTICLE | Company News

Valeant bumps cash portion of Allergan bid

May 31, 2014 12:30 AM UTC

On Friday, Valeant Pharmaceuticals International Inc. (TSX:VRX; NYSE:VRX) bumped to $72 per share from $58.30 the cash component of its bid for Allergan Inc. (NYSE:AGN). Valeant did not change the other terms of its offer, which include a stock component of 0.83 Valeant shares for each Allergan share, plus a $25 contingent value right (CVR) tied to sales of Allergan's Phase II ophthalmic program AGN-150998. Additionally, hedge fund Pershing Square Capital agreed to forgo the cash component and exchange its Allergan shares for 1.23 Valeant shares. Pershing is Allergan's largest shareholder with a 9.7% stake. The new terms would value Allergan at up to $62.2 billion.

Valeant also said the new offer is "contingent on good faith negotiations." Allergan said it will evaluate the offer, which updates a Wednesday bid from Valeant that had valued Allergan at up to $57.8 billion. Earlier this month, Allergan's board unanimously rejected Valeant's first unsolicited public offer, which valued Allergan at about $47 billion (see BioCentury Extra, May 28). ...