X producer Allergan yesterday rejected a revised $53bn (£32bn) bid from Valeant and hedge fund billionaire Bill Ackman’s Pershing Square Capital Management.
The offer included $72 in cash and 0.83 Valeant shares.
The teaming up of activist investor and strategic buyer has set a new precedent for the industry, and with Allergan playing hard to get, Valeant will need to allay fears that it is underpricing one of the world’s leading cosmetic specialised pharmaceutical companies.
The war of words between the two companies recently reached a new height when Valeant was accused by Allergan’s board of obscuring financial information and lacking significant growth.
Allergan’s chief executive officer David Pyott said in a letter to Valeant yesterday: “We do not believe your latest proposal offers sufficient or certain value to warrant discussions between Allergan and Valeant.”
A Valeant spokeswoman said the company would move forward with its plan to take the deal to investors.
Shares in Allergan fell 0.6 per cent yesterday while Valeant fell 0.85 per cent.