Valeant bid for Allergan heats up, Pershing plans to replace Allergan board members

June 3, 2014

Allergan says it will “carefully review and consider” a revised proposal from Valeant of $53.8 billion bid-while Pershing Square, the hedge fund that owns 9.7 percent of Allergan is calling to replace the company’s board.

Irvine, CA-Allergan says it will “carefully review and consider” a revised proposal from Valeant of $53.8 billion bid-while Pershing Square, the hedge fund that owns 9.7 percent of Allergan is calling to replace the company’s board. 

Valeant recently increased its offer to $72 in cash and 0.83 shares of Valeant stock, after Allergan swiftly rejected its initial offer of $48.30 in cash and 0.83 shares of Valeant stock.

“We believe our revised offer provides enormous value to both Valeant and Allergan shareholders,” says Valeant CEO and Chairman J. Michael Pearson. “We strongly believe that applying Valeant's operating philosophy, strategy, and financial discipline to a broader set of durable assets will continue to create substantial returns for shareholders over the short, intermediate, and long term. We are very committed to getting this deal done, and are now modifying our offer with the assistance of Pershing Square to increase the economics for all Allergan shareholders.” 

During a conference call with Pearson, Pershing Square CEO Bill Ackman told investors he has requested a special meeting, during which Pershing plans to replace a majority of the company’s directors, according to Reuters. The meeting is planned for as early as August 7, but Allergan could delay the meeting to as late as November.

The New York Times, which calls the deal “one of the most confounding takeover attempts in recent memory,” said the move to replace Allergan’s board members would increase the pressure on Allergan’s management. 

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