Valeant goes hostile in $53 billion bid for Allergan

Canada’s Valeant Pharmaceuticals International (TSX: VRX) has today commenced an exchange offer for the common stock of Botox maker Allergan (NYSE: AGN), taking its May 30 $53 billion acquisition proposal directly to Allergan stockholders. The twice increased bid has been  rejected by Allergan’s board.

Under the terms of the offer, Allergan stockholders would be able to elect to exchange each of their Allergan shares for $72.00 in cash and 0.83 Valeant common shares, or an amount of cash, or a number of Valeant common shares, in each case subject to proration. The offer is scheduled to expire at 5:00 pm, New York City time, on August 15, 2014, unless the offer is extended. Valeant expects to complete a second-step merger promptly following the consummation of the exchange offer in order to acquire the remaining Allergan shares.

"We believe Allergan's stockholders should have the opportunity to express their views and we are confident that Allergan's stockholders will support this combination," said Michael Pearson, chairman and chief executive, adding: "This offer, together with Pershing Square's ongoing efforts to call a special meeting of Allergan stockholders, is part of Valeant's clear path to complete a transaction with Allergan."