Allergan Considers, Rejects Valeant's Merger Proposal


Allergan Inc. (AGN) has officially rejected Valeant Pharmaceuticals International (VRX) Inc.’s takeover offer, stating that the offer “substantially undervalues” the true value of the maker of the incredibly popular Botox treatment. Allergan also said that this deal would prevent their high potential for future growth.

The bid, which valued Allergan at $45.7 billion in cash and stock when it was announced, creates “significant risks and uncertainties,” the California-based company said in an official statement regarding the failed merger. Allergan expects earnings per share to rise 20 percent to 25 percent in 2015, with double-digit revenue growth, the company said in the statement

Under the proposed deal, Valeant would exchange each Allergan share for $48.30 in cash and a small amount of Valeant Pharmaceutical’s shares as well. Allergan stockholders would own 43 percent of the combined company under said proposal. Valeant remains committed to trying to strike a deal with Allergan, yet it remains to be seen whether or not the two major companies will be able to reach any sort of agreement.

By: Trent Chamberlain

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