Valeant launches hostile bid for Allergan
Valeant Pharmaceuticals International Inc. (TSX:VRX; NYSE:VRX) started a hostile tender offer for Allergan Inc. (NYSE:AGN) at $72 cash and 0.83 Valeant shares per Allergan share, or about $170.66 per share based on Valeant's close of $118.87 in New York on Tuesday. The $170.66 price values Allergan at about $52.5 billion. The price is a 46% premium to Allergan's close of $116.63 on April 10, before hedge fund Pershing Square Capital -- Allergan's largest shareholder -- disclosed a 9.7% stake in Allergan. Allergan's board advised shareholders to take no action and that it will issue a position on the offer. The offer expires Aug. 15.
Last week, Allergan's board unanimously rejected Valeant's revised unsolicited offer, which contained the same cash and stock components as the hostile tender, plus a $25 CVR tied to sales of Allergan's Phase II ophthalmic program, AGN-150998 (see BioCentury Extra, June 10). ...