Valeant Pharmaceuticals raises takeover bid for Allergan Inc. to $166.16 a share

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Valeant Pharmaceuticals International Inc. increased its offer to acquire Botox maker Allergan Inc. and even sold its U.S. and Canadian skin-care product rights in an effort to win approval from antitrust regulators should the deal go through.

The new higher offer valued Allergan at $49.4bn, or $166.16 per share, compared with last month’s offer of $45.5bn, or $152.89 per share, that was launched with the backing of activist investor Bill Ackman, who has a 9.7 percent stake in Allergan.

Allergan said it had received Valeant’s fresh offer and that its board of directors would “carefully review and consider” the new proposal.

Valeant’s earlier bid was rejected by Allergan, which described the offer as undervaluing the company, and questioned its suitor’s commitment to research and development.

Valeant said it sold commercial rights to five aesthetic dermatology products to Nestlé SA for a price tag $1.4bn. Valeant Chief Executive J. Michael Pearson said the move would smooth the antitrust review process of the proposed deal, if its unsolicited takeover becomes successful.

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