facebook
twitter
rss
account
search
search
 

Allergan rejects uninvited takeover proposal from Valeant

Allergan said the offer did not not sync with where the company sees itself in the next few years, and grossly undervalues the company.
By Ananth Baliga   |   May 12, 2014 at 2:48 PM   |   Comments

http://cdnph.upi.com/sv/em/i/UPI-7121399916193/2014/1/13999201398039/Allergan-rejects-uninvited-takeover-proposal-from-Valeant.jpg
IRVINE, Calif., May 12 (UPI) -- Botox maker Allergan has rejected a takeover bid by Valeant Pharmaceuticals calling the offer an underestimation of the value of the company.

The deal which was valued at $45.7 billion in cash and stocks was rejected by Valeant citing significant risks and uncertainties for investors. Allergan has been very upbeat about its future prospects expecting double-digit revenue growth and a 20 percent to 25 percent rise in share value.

Allergan Chief Executive David Pyott said the Valeant offer "does not reflect the value of the company's leading market positions."

"After thorough consideration, it is the unanimous view of the Allergan board that your unsolicited proposal substantially undervalues Allergan, creates significant risks and uncertainties for the stockholders of Allergan, and is not in the best interests of the company and its stockholders," Pyott said in a letter to the Allergan board.

Allergan co-founder Gavin Herbert had said earlier this month that he was worried that a Valeant takeover would mean cutting their R&D budget by as much as 80 percent. That would have severely affected the company's ability to produce new drugs.

Follow @antbaliga and @UPI on Twitter.
Contact the Author
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Iran could retool pipeline for Pakistan Iran could retool pipeline for Pakistan
2
Iraq relying on oil wealth from Basra Iraq relying on oil wealth from Basra
3
Arctic oil bound for Europe, Gazprom Neft says Arctic oil bound for Europe, Gazprom Neft says
4
Greenpeace puts more pressure on LEGO Greenpeace puts more pressure on LEGO
5
Scotland was tricked, 'yes' backers say Scotland was tricked, 'yes' backers say
Trending News
Video
x
Feedback