Valeant tries again and Allergan says 'no'
$54 billion offer rejected; hostile takeover bid possible
- The Valeant/Pershing Square team made another offer for Allergan---$72/share and 0.83 Valeant common shares.
- Allergan claims that the new proposal undervalues the company.
- Valeant will most likely continue to pursue Allergan and may engage in a hostile takeover.
The new offer of $54 billion, up from $45.7 billion, does not satisfy Allergan CEO David Pyott. Not only does Pyott find the Valeant business model “unsustainable,” but he notes that Allergan is strong financially and in terms of its R&D pipeline. He notes that his company’s strategic plan will add $14 billion in additional free cash to its coffers within the next five years.
Valeant contends that combining the businesses could save $2.7 billion. It seems that this is not the end of the discussion, and it’s not entirely clear that Allergan would not consider a proposal that Pyott and the board find appealing---both in terms of price and terms.
- pharmafile.com Allergan rejects Valeant again