Valeant joins with hedge fund in $45.6 billion unsolicited bid for Allergan

Canada’s Valeant Pharmaceuticals International (TSX: VRX), never shy to go for hostile takeover moves, says it has submitted a merger proposal to the board of directors of US Botox maker Allergan (NYSE: AGN), valuing the latter at around $45.6 billion.

Allergan's shares leapt 21% to $171.50 in after-hours trading, while Valeant gained over 10% to $139.05.

Under the proposed offer, each Allergan share would be exchanged for $48.30 in cash and 0.83 shares of Valeant common stock, based on the fully diluted number of Allergan shares outstanding. Shareholders will be able to elect a mix of cash and shares, subject to proration. The proposal represents a substantial premium based on Allergan's unaffected price of $116.63 on April 10, 2014 , the day before hedge fund Pershing Square Capital Management crossed the 5% Schedule 13D ownership level and commenced its rapid accumulation program.