Boston, MA 09/25/2014 (wallstreetpr) – Valeant Pharmaceuticals Intl Inc (NYSE:VRX) yesterday said that its revenue for Q3, 2014 will be stronger than anticipated. The company pushed Allegan harder to accept its offer on this pretext.
Formerly known as Biovail Corporation, Valeant, said it expects the following quarter’s revenue figures to be higher than those expected by the Consensus. As highlighted in an article, the company also mentioned that it will announce the quarter’s earnings on October 20, 2014. With the announcement, Valeant further increased pressure on Allergan, Inc. (NYSE:AGN) for accepting its offer.
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has been fighting to buy Allergan for the last five months and has already made proposals in conjunction with activist investor William Ackman. However, Allergan has been adamant in this context, rejecting the buy-out proposal over and over again. Hedge Fund, Pershing Square Capital Management LP, owner Mr. Ackman, has been struggling to get his offer accepted in what has become the most controversial take-over battle.
“Olive Branch” Offer
Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s latest offer came after the company announced that its earnings, excluding restructuring costs, will be better than estimates. The pharmaceutical company, which has been urging Allergan to consider its acquisition offer since April, has raised its offer to value the Botox-manufacturer at around $53 million. Valeant’s latest bid is seen as a counter to Allergan’s reasons for rejecting the previous offers. Allergan believes that the result of a merger would be weak organic growth. In addition, Allergan has also criticized Valeant’s business strategy.
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) had publicly showcased its recent talks with Allergan in three letters. This week, Valeant’s Chief Executive Officer, J. Michael Pearson had sent a letter to Allergan’s CEO, David Pyott. In the letter, Pearson had willingly offered Allergan its “olive branch” to negotiate the acquisition at the next level. In the letter dated Sept 22, 2014, he even urged Pyott to discuss the deal so as to evade a three-month proxy contest.