Boston, MA 06/02/2014 (wallstreetpr) – Valeant Pharmaceuticals Intl Inc (NYSE:VRX) increased its offer to acquire Allergan, Inc. (NYSE:AGN) for the second time in the week.
Second Raise In A Week
The Canada based drug maker said on Friday that it is agreeable to offer $72 and in addition a part of its stock for each of Allergan’s share. Prior to this, the company had made an offer of $58.30 on Wednesday for the Botox maker. It has increased the cash portion of the offer to earn the support of the company’s executive and investors. Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s latest offer amounts to as much as $53 billion, as per the closing price of its shares on Thursday. The company, however, said that the offer relies on the opposite party’s immediate and good faith deal of a merger agreement.
The Irvine, California based company had rejected the offer Valeant Pharmaceuticals Intl Inc (NYSE:VRX) had proposed earlier this month. The $46 billion offer, it had claimed, was undervaluing the company. This had pushed Valeant to reconsider and it then came up with a bid of $25 per share. This was a conditional value based on the future sales of Allergan’s proposed eye treatment.
Ackman Seeks More For Other Shareholders
The second surge in the Laval, Quebec based company’s offer now allows Allergan holders $72 per share in cash. As part of the offer, Allergan’s largest shareholder, Pershing Square Capital Management, agreed to let go off the cash part of the bid so as to push other investors to agree. Its chief executive, Bill Ackman, said that this would mean a discount to other shareholders of around $20.75 per share. On May 29, he had said that he is willing to let go off the hedge fund’s gain if Valeant’s CEO, Mike Pearson, agrees to raise the offer for other shareholders.
Allergan, Inc. (NYSE:AGN) said in a statement and said that its board of directors will be considering the new offer. It bid its shareholders to refrain from taking action yet.
