October 27, 2014
By Riley McDermid, BioSpace.com Breaking News Staff
In the latest chapter of the apparently never-ending battle for control of Botox maker Allergan , Canadian drugmaker and hostile acquisitor Valeant said Monday it would be willing to raise its takeover bid for the company by almost 12 percent.
That new price would $200 or more per share for Allergan, or around $59 billion.
Valeant laid out the new terms in a letter sent to Allergan‘s board Monday, which said the increase would consist of added “consideration” and expected appreciation of Valeant‘s own stock to be used in any deal.
“To be clear, Valeant is prepared to improve its offer and provide value to your shareholders of at least $200 a share. We are confident that an increase in our stock price, and in consideration, will provide that value,” Valeant Chief Executive Officer Michael Pearson said in the letter.
Allergan did not respond to comment early Monday.
Last week, after riding high on better-than-expected quarterly profits, Pearson said a revised offer could include stock and cash worth more than $200 per share, a jump from its current $176 per share offer.
“When people have time to reflect on our performance this quarter, it hopefully goes a long way of convincing the Allergan shareholders that our currency is actually a great stock to own,” Pearson told Reuters at the time. “We have some money in our pocket.”
Generic drugmaker Allergan has spent most of this year battling with activist hedge fund investor Ackman, a major shareholder in the company, who has been heavily involved in the effort to force Allergan to accept a $53 billion bid for the company from Valeant.
Ackman‘s $15 billion hedge fund Pershing Square Capital Management is a top shareholder in Valeant, which has been attempting a hostile takeover of Allergan since April. Valeant quickly upped its offer over a series of weeks and eventually launched a tender offer.
Both companies have been using the legal system to force their points. In August, Allergan sued the two companies, alleging their cozy relationship has run afoul of insider trading regulations. Ackman owns 9.7 percent of Allergan, an amount the company has asked a court to disqualify as counting towards a 25 percent shareholder quorum.
