Valeant goes hostile in bid for rival Allergan

Valeant Pharmaceuticals International yesterday launched a hostile takeover bid for rivals Allergan, proposing that Allergan shareholders exchange each of their shares for $72 and 0.83 of a Valeant share, valued at roughly $52.7bn (£31bn) in cash and stock.

The offer is contingent on Botox-maker Allergan’s shareholders approving the issuance of Valeant common shares in the acquisition.

Quebec-based Valeant said it planned to file a preliminary proxy statement on a special meeting of its shareholders soon.

“We believe Allergan’s stockholders should have the opportunity to express their views and we are confident that… [they] will support this combination,” said Valeant chief executive Michael Pearson.

Allergan said its board would review the exchange offer, which will expire on 15 August. It had rejected an offer containing the same major terms on 10 June.

Allergan shares closed up 1.17 per cent in New York to $162.41, while Valeant was down in Toronto by 0.44 per cent to C$128.53.