Valeant Plans To Commence Tender Offer For Allergan This Week

(RTTNews) - Canadian drug maker Valeant Pharmaceuticals Inc. (VRX, VRX.TO), plans to take its $53-billion offer for Allergan Inc. (AGN) directly to the shareholders this week, after the Botox maker repeatedly rejected Valeant's acquisition proposals.

In the latest development of the takeover battle, Valeant's Chief Executive Michael Pearson, in a conference call on Tuesday, said the company will take the tender offer directly to the shareholders. "It is clear Allergan's management and their board will never sit down and act in the interest of their shareholders," Pearson said in the conference call.

In April, Valeant along with Pershing Square Capital Management L.P. submitted an unsolicited bid to acquire Allergan in a cash and stock deal that valued Allergan at $46 billion. However, the Board of Allergan rejected the offer stating it created huge risks for its stockholders and was not in the best interests of the company.

In late May, Valeant Pharma twice sweetened its offer for Allergan to about $53 billion. However, Allergan again rejected the offer last week.

William Ackman has called for a special meeting of Allergan shareholders seeking to oust six directors from the current Board of Allergan and smoothen process to close the deal. Pershing is the largest Allergan shareholder with a 9.7 percent stake in the company. Last Friday, the hedge fund filed a lawsuit, seeking a declaratory judgment to confirm that its plan to call a special meeting of Allergan shareholders will not trigger the Botox maker's recently adopted poison pill.

VRX is currently trading at $119.60, up $1.85 or 1.57%, while AGN is trading at $161.43, up $2.06 or 1.29%, on the NYSE.