Dive Brief:
- Valeant, which has pursued a hostile takeover bid for Botox-maker Allergan for months, says it is ready to raise its bid.
- The pharmaceutical company "is prepared to improve its offer and provide value to your shareholders of at least $200 a share," Valeant Chairman and CEO J. Michael Pearson said in a letter sent Monday to Allergan's board.
- The letter also contained harsh language about Allergan's resistance so far to the takeover.
Dive Insight:
In a way, this looks like praising with faint damnation as the takeover fight continues. The letter opens with tough talk: "One month ago I extended an olive branch, which was summarily rejected the same day. You have refused all of our offers to meet and answer any questions you may have about Valeant or about our offer. Instead, you have allowed management to continue making baseless attacks. Our third quarter earnings have clearly refuted those attacks and fully validated our business model," Pearson wrote to the board.
Pearson says Valeant's stock "is trading at artificially low levels" because of Allergan's resistance, and then he makes the big pitch, promising a minimum "value to your shareholders" of $200/share. Valeant's last offer was $179/share.
The smack talk continues: "Management has shown its true colors through 'horse-choking' bylaws, baseless attacks and frivolous litigation," Person writes. "It is past time for the board to take control of this process, do what is right for the Allergan shareholders and come to the table."