Valeant raises offer for Botox maker to €49.4m
VALEANT Pharmaceuticals International has raised its unsolicited offer for Allergan to about $49.4bn (€36.3m), adding more cash to the bid in an effort to win backing from the target and its investors.
Shareholders in Allergan, which makes the Botox anti-wrinkle drug in Cork, will get cash and stock of about $166.16 (€122) a share, plus a contingent value right valued at as much as $25 a share if an experimental eye drug meets sales goals, the Quebec-based company said. The original offer, which didn't include a CVR, was valued at about $152.89 a share when it was announced on April 22.
Valeant, in a separate move, also sold rights to some skin-care products to Nestle for about $1.4bn. The deal includes products designed to improve frown lines and wrinkles, and may help clear antitrust questions on the Allergan deal, Valeant's largest ever.
The Nestle agreement "eliminated one more roadblock in terms of our integration with Allergan," Valeant CEO Mike Pearson said.
Allergan shares have gained about 16pc since the offer, signaling investors expected Valeant to pay a higher price, and its market value had increased to $49.1bn. (©Bloomberg)