Allergan, Actavis Near Deal
Companies’ Boards to Meet to Bless Cash-Stock Transaction
Actavis PLC and Allergan Inc. are nearing a friendly deal that could swipe the Botox maker from hostile suitor Valeant Pharmaceuticals International Inc., according to people familiar with the matter.
The boards of the two companies are expected to meet to review a cash-and-stock deal, the people said. An agreement could be announced as early as Monday, some of the people said, but timing could slip and one person said later in the week could be more likely.
An agreement could thwart the monthslong efforts of Valeant and activist investor William Ackman to jointly take over Allergan, the maker of Botox. Their most recent bid was $53 billion in cash and stock, though Valeant has entertained boosting it.
A combination of Allergan and Actavis would create a diversified pharmaceutical company selling both brand-name and generic drugs for stomach, eye, skin and other conditions. The company would ring up about $23 billion a year in sales, putting it around the top 10 of pharmaceutical companies by revenue.