Valeant planning Allergan bid

Valeant Pharmaceuticals International Inc. (TSX:VRX; NYSE:VRX) and Allergan Inc. (NYSE:AGN) jumped in early after-hours trading on Monday after Valeant disclosed in an SEC filing after market close that it plans to make a bid to merge with Allergan Inc. (NYSE:AGN) in a cash and stock deal. According to the filing, Valeant has not yet determined specific terms, but the cash component of the bid will be around $15 billion. In February, Valeant and hedge fund Pershing Square Capital created a newco -- PS Fund 1 LLC -- to acquire a stake in Allergan. PS Fund 1 owns about a 10% stake in Allergan.

Allergan had 2013 revenues of $6.3 billion, while Valeant had $5.8 billion in revenues for the year. Allergan declined to comment. ...