Valeant Hikes Bid Amount For Allergan, Inc (NYSE:AGN)


Dallas, Texas 05/29/2014 (FINANCIALSTRENDS) – Valeant Pharmaceuticals has now pumped some more cash into the bid for Allergan, Inc (NYSE:AGN), the Botox maker & it also defended the business model last week a day after the reluctant acquisition target aired even more concerns about the deal. The drugmaker said that it will now offer $58.30 & a segment of its stock for every Allergan share. This revised bid may be worth in excess of $50 billion, and is based on the closing price for the U.S.-traded shares of Valeant. But this still might not be enough to get AGN at the negotiating table, say analysts.

Review pending

Valeant also threw in the contingent value-right worth upto $25/share & based on the future sales of its potential eye treatment. It raised the cash-portion of the offer by $10 from the previous bid of $48.30/share. That was a part of the unsolicited offer that Allergan, Inc (NYSE:AGN) had rejected and had been worth almost $46 billion when this had been announced last month by Valeant. AGN said in a very brief statement last week that it would very carefully review this new proposal.

The right price

Valeant’s Chairman and Chief executive officer, J. Michael Pearson has told investors that he had spoken with numerous AGN stock owners and the very real message that they continually got back is that the Allergan, Inc (NYSE:AGN) shareholders are “for” the deal, but that they are looking for a higher price. That particular price might still not be as high as the investors want it to be . This latest bid now totals around $166 in cash & stock for every Allergan share, & the shareholders might be looking for an amount that is in the range of $180 said Dr. Vamil Divan, a Credit Suisse in a research note. Allergan, Inc (NYSE:AGN) also makes Restasis, the dry eye treatment, has said time and again that it is against any deal with Valeant.