Botox Maker Purchased
(Reuters) – Canada’s Valeant Pharmaceuticals International Inc said on Tuesday it has partnered with activist investor Bill Ackman in an unsolicited $47 billion bid to buy Botox makerAllergan Inc in a move to eventually become one of the world’s five biggest drug companies. Valeant offered to pay $48.30 a share in cash and 0.83 of its common share for each Allergan share, valuing Allergan at $152.88 a share, a premium of over 7 percent to the company’s closing price on Monday.
The offer is 31 percent higher than Allergan’s stock price on April 10, the day before Pershing Square’s ownership reached 5 percent. Shares of Allergan jumped 17 percent in trading before the morning bell to $166 in New York, signaling that investors expect a sweetened bid to emerge. Valeant stock rose 5 percent to $132.60.
Valeant has been on a buying spree since 2010 and last year acquired contact lens maker Bausch & Lomb Holdings. “This proposal represents an undeniable opportunity to create extraordinary value for both Allergan and Valeant shareholders by establishing an unrivaled platform with leading positions in ophthalmology, dermatology, aesthetics, dental and the emerging markets” said Valeant Chief Executive Michael Pearson.