Valeant Pharmaceuticals has offered shareholders a combination of cash and company shares in order to obtain a controlling portion of Allergan in a hostile takeover bid reportedly worth US$53 billion.
Valeant first made a bid for the company in May, though the bid was rejected. Its new strategy is an “exchange offer for the common stock of Allergan.” This will allow Valeant’s financial partner Pershing Square Capital Management to take over the company.
“We believe Allergan’s stockholders should have the opportunity to express their views and we are confident that Allergan’s stockholders will support this combination,” says J. Michael Pearson, chairman and CEO of Valeant. “This offer, together with Pershing Square’s ongoing efforts to call a special meeting of Allergan stockholders, is part of Valeant’s clear path to complete a transaction with Allergan.”
Allergan stockholders are being offered $72 in cash and 0.83 Valeant common shares in exchange for their Allergan stocks. The deadline for the deal is August 15.
