Valeant Increases Takeover Offer for Allergan
Boosts Cash Portion of Bid, Adds Contingent Value Right
Valeant Pharmaceuticals International Inc. VRX.T -1.85% on Wednesday said it had boosted its offer to buy Botox maker Allergan Inc., AGN -1.14% increasing the cash part of its cash-and-stock bid by $10 a share to $58.30.
That puts the new offer's value at $166.16 a share, or $49.4 billion, compared with the $152.89 a share, or $45.5 billion, of Valeant's initial bid publicized last month.
Valeant also is proposing a contingent value right potentially worth up to $25 a share depending on the sales level for the eye treatment DARPin, which is still at the trial stage.
Allergan had previously rejected Valeant's initial bid, saying the offer undervalued the company. Allergan has also expressed doubts about Valeant's acquisition-heavy business model in lieu of research and development spending.
Valeant on Wednesday said it would commit to invest as much as $400 million to develop DARPin, which has faced delays.