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Valeant on Wednesday offered to pay $58.30 per
Allergan share in cash, about $10 higher than its previous offer
of $48.30. The stock component of the offer remains the same at
0.83 of a Valeant share for each Allergan share
The new offer values Allergan at $166.16 per share as of
Tuesday's closing price, and is about 8.6 percent higher than
the previous bid of $153 as on April 22 when Valeant first made
its offer.
That offer, by Valeant and activist investor Bill Ackman, was
worth $47 billion and was spurned by Allergan, which said the
Canadian company had overstated the possible savings from the
deal.
Valeant's offer on Wednesday is also lower than the price of
$180-$200 per share that investors were looking for, according
to an investor survey taken last week.
The new offer also includes a contingent value right of up to
$25 per share related to the sales of Darpin, Allergan's
experimental eye drug that is seen as a potential competitor to
Regeneron Pharmaceuticals Inc's <REGN.O> highly successful
medicine Eylea.
Allergan on Tuesday built its case with investors for rejecting
Valeant's offer, one day before Valeant's scheduled webcast to
explain its case.
Separately, Valeant said on Wednesday that it would sell some of
its skincare treatments business, including facial fillers for
treating wrinkles, to Nestle SA <NESN.VX> for $1.4 billion in
cash.
Allergan shares have risen 16 percent since Valeant's initial
offer to close at $165.02 on Tuesday on the New York Stock
Exchange.
Valeant's U.S.-listed shares have risen a little over 3 percent
in that same period to close at $129.95 on Tuesday.
(Reporting by Esha Dey in Bangalore; Editing by Savio D'Souza)
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