According to people familiar with the matter, Valeant Pharmaceuticals and Pershing Square Capital Management are planning to increase their offer for Allergan by $15 per share, The Wall Street Journal reported Tuesday. The revised offer, valued at about $191 per share, would represent a 2.5-percent premium over Allergan's closing share price on October 7, as well as an 8-percent premium to the previous offer submitted for the US drugmaker.
The sources indicated that the bidders are still determining the timing as well as the mix of cash and stock to comprise the increased offer. Allergan's board unanimously rejected Valeant's previous offer, consisting of $72 per share in cash plus 0.83 shares of Valeant stock, in addition to a contingent value right (CVR) of up to $25 per share, asserting that the offer "grossly undervalued" the company.
The reported revised offer follows news that Actavis, which was said to be interested in a takeover of Allergan, was prepared to re-engage with the latter company regarding a potential merger. According to sources, Allergan would consider an offer worth in excess of $200 per share.
Also on Tuesday, Allergan, which has filed litigation seeking to invalidate Pershing Square's acquisition of a nearly 10-percent stake in the company, asked a US federal court to block the investor from voting its shares in a special shareholder meeting on December 18.
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