Allergan warns shareholders to take no action ahead of Valeant calling 'special meeting'

Takeover target USA-based Allergan (NYSE: AGN) has responded to action taken by Canadian drugmaker Valeant Pharmaceuticals International (TSX: VRX) which could see it submit a bid directly to the company’s shareholders.

Last week Valeant upped its offer by 21%, raising the cash consideration by $10 per share to $58.30, before it raised its offer even further to $72.00 on Friday. Pershing Square Capital Management is reported to be filing preliminary proxy materials with the US Securities and Exchange Commission in order to solicit proxies to call a special meeting of Allergan's stockholders.

At the special meeting, Allergan stockholders would be asked to remove a majority of the company's existing directors in connection with Valeant’s unsolicited proposal to acquire all of the outstanding shares of the company for a combination of 0.83 of Valeant common shares, $72.00 in cash per share of common stock of the company, and a contingent value right (CVR) related to DARPin sales and request that new directors be appointed.