This week, Allergan’s board of directors unanimously rejected an unsolicited proposal from Valeant Pharmaceuticals International, Inc.
Irvine, CA-This week, Allergan’s board of directors unanimously rejected an unsolicited proposal from Valeant Pharmaceuticals International, Inc.
In a letter to Valeant CEO Michael Pearson, the Allergan board wrote, “After thorough consideration, it is the unanimous view of the Allergan Board that your unsolicited proposal substantially undervalues Allergan, creates significant risks and uncertainties for the stockholders of Allergan, and is not in the best interests of the Company and its stockholders. Accordingly, the Allergan Board unanimously rejects the Proposal.”
Allergan’s largest shareholder, Pershing Square Capital Management, worked with Valeant to cooperatively engage in a hostile takeover of Allergan last month.
“Allergan has a long history of producing consistent growth and delivering solid results through a combination of innovation, execution and discipline,” says David E.I. Pyott, Allergan's chairman of the board and CEO. “We are confident in our ability to extend our track record, enthusiastic about the opportunities before us, and believe Allergan is well positioned to deliver compelling value to our stockholders. Furthermore, the Board has determined that Valeant's proposal creates significant risks and uncertainties for Allergan's stockholders and believes that the Valeant business model is not sustainable.”