A doctor measures out a Botox injection on June 5, 2009 in Arlington
New York - AFP
Canada's Valeant Pharmaceuticals on Monday signaled plans to raise its bid for Allergan, a move that set off a fresh round of jousting between the two warring drug makers.
Valeant said it was willing to offer "at least $200 a share" to Allergan shareholders, increasing the value of its most recent bid by $10 billion to $60 billion.
Valeant's latest effort towards a friendly takeover comes ahead of Allergan's December 18 special shareholder meeting at which Valeant hopes to replace a majority of the company's board.
Valeant, backed by hedge-fund activist Bill Ackman, faulted Allergan for repeatedly snubbing its overtures.
"One month ago I extended an olive branch, which was summarily rejected the same day. You have refused all of our offers to meet and answer any questions you may have about Valeant or about our offer," said Valeant chief executive J. Michael Pearson in a letter.
"To be clear, Valeant is prepared to improve its offer and provide value to your shareholders of at least $200 a share," Pearson said.
"No other potential acquirer of Allergan has the operational and tax synergies that we have, and no other potential acquirer of Allergan can provide the value that we can."
Allergan said it would "carefully consider" a tangible offer for the company to replace the current bid, which exchanges $72 in cash and 0.83 Valeant shares for each share of Allergan.
"However, to date, as we have noted repeatedly, Valeant's offers have been grossly inadequate and significantly undervalued Allergan."
Allergan said Valeant's move was "simply a tactic to distract investors from Allergan's outstanding third quarter results" released Monday.
Earnings rose 4.2 percent to $312.5 million behind a 16.6 percent increase in revenues, besting analyst forecasts.
Allergan also accused Valeant of making "disparaging remarks" after Valeant said the sharp increase in Allergan shares in 2014 was "unimaginable" without Valeant's pursuit of the company.
At midday, Allergan shares were down 0.1 percent at $184.08, while Valeant rose 0.9 percent to $130.24.