Valeant plans to up stakes with hike in $47bn offer for Botox maker Allergan
Valeant Pharmaceuticals International said yesterday that it will "improve" its $47bn (€34bn) takeover offer for drugmaker Allergan after the US company rejected a recent bid.
Allergan employs more than 1,000 people in Westport making the popular anti-wrinkle treatment Botox and recently launched a bid for Dublin-based rival Shires.
Canada's Valeant said it would make the change to its cash and stock offer at a May 28 webcast in which it will discuss details of its plans for Allergan's business.
Valeant said it remained committed to getting the deal done but would remain "financially disciplined".
Allergan said yesterday that Valeant's business model was unsustainable and the offer was too risky because of uncertainty about the company's long-term growth.
Valeant, fresh off its purchase of Bausch & Lomb last year, and investor William Ackman of Pershing Square Capital Management made an offer for Allergan on April 22. Allergan put in a so-called "poison pill" within days to slow Ackman from increasing his nearly 10pc stake in Allergan.
Valeant said at that time it planned to cut costs at Allergan by about $2.7bn, including in research and development.
"We will not stop our pursuit of this combination until we hear directly from Allergan shareholders that you prefer Allergan's 'stay the course plan' to a combination with Valeant," Valeant CEO Michael Pearson, pictured, said yesterday in a letter to shareholders. (Reuters)