Allergan Inc. reiterated its opposition to Valeant
Pharmaceuticals International Inc.'s $53 billion hostile takeover
offer, despite the recent calls from big shareholders to start
negotiating.
Valeant has been trying to buy Allergan since April, in
conjunction with Bill Ackman's Pershing Square Capital Management
LP, in one of the year's most contentious takeover battles.
In a news release Monday, Allergan said "there has recently been
significant and potentially distracting market speculation
regarding Allergan" and as a result the board thought it was
necessary to "reiterate our unanimous perspective."
Mutual fund giant T. Rowe Price Group, Allergan's second largest
shareholder, on Friday urged Allergan to allow shareholders to vote
on any major acquisitions.
Meanwhile, Allergan's 10th-biggest holder, Pentwater Capital
Management, sent a letter last week that accused the board of
having "grown increasingly hostile toward its own shareholders" and
pushed the board to negotiate with Valeant and Actavis PLC.
The Wall Street Journal has reported Allergan rebuffed an
approach by Actavis, which was interested in a takeover. The
Journal has also said Allergan is in advanced talks to acquire
Salix Pharmaceuticals Ltd. That deal, likely worth $10 billion,
could make Allergan too large and complicated for Valeant to
buy.
Mr. Ackman, whose Pershing Square is Allergan's largest
shareholder with a 9.7% stake, has threatened to sue if Allergan
signs a deal without giving shareholders a vote or without
negotiating with Valeant.
Allergan also pointed on Monday to its strong second-quarter
performance and raised guidance, as well as a restrucuturing
program unveiled in July that aims to reduce annual costs by $475
million.
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