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Valeant sweetens offer for Allergan again

Published on NewsOK Modified: May 30, 2014 at 5:57 pm •  Published: May 30, 2014

Valeant Pharmaceuticals International has sweetened its offer to buy Botox maker Allergan for the second time this week.

The Canadian drugmaker said Friday it will now offer $72 and a portion of its stock for each Allergan share. That's up from an offer of $58.30 and a portion of stock per share that Valeant extended on Wednesday.

The latest bid could be worth more than $53 billion, based on Thursday's closing price for U.S.-traded shares of Valeant. But it's contingent on Allergan engaging in a prompt, good-faith negotiation of a merger agreement, Valeant said.

Shares in Allergan, based in Irvine, California, jumped nearly 6 percent Friday, while Valeant shares added 1.5 percent.

Earlier this month, Allergan rejected an offer of nearly $46 billion, saying it undervalued the company. On Wednesday, Valeant increased its initial bid, throwing in a contingent value right worth up to $25 per share, based on future sales of a potential eye treatment.

As part of Friday's offer, Pershing Square Capital Management, Allergan's largest shareholder, agreed to receive no cash if the deal goes through. That amounts to forfeiting up to $600 million in value to other Allergan shareholders, said Bill Ackman, Pershing Square's chief executive.

"We are very committed to getting this deal done, and are now modifying our offer with the assistance of Pershing Square to increase the economics for all Allergan shareholders," said J. Michael Pearson, Valeant's chairman and chief executive.

In a statement, Allergan said its board of directors would carefully review the latest buyout offer.

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