Allergan agrees to $66B friendly bid from Actavis

Allergan has reached a friendly deal to be acquired by Actavis PLC in a deal valued at $66 billion US blocking an attempted hostile takeover by Quebec-based Valeantand its U.S. backer Pershing Square.

Shareholders of the California-based maker of Botox will receive about $219 US per share, comprised of a combination of cash and shares of Dublin-based Actavis.

Shares of Allergan were trading at about $212 in early trading in New York, up seven per cent from Friday's close, while Actavis stock traded on the New York Stock Exchange were up about four per cent at just under $253 while Valeant shares were down 39 cents at$151.08 Cdn on the Toronto Stock Exchange.

Allergan says the white knight offer from Actavis has been unanimously supported by the directors of both companies.

They say a combined Allergan-Actavis would have more than $23 billion in annual revenue.

Combined company

"Today's transaction provides Allergan stockholders with substantial and immediate value, as well as the opportunity to participate in the significant upside potential of the combined company," said David Pyott, Allergan's chairman and CEO.

"We are combining with a partner that is ideally suited to realize the full potential inherent in our franchise."

Pyott had campaigned extensively against the Valeant offer.

Brent Saunders, CEO and President of Actavis, said that the deal will make the combined company one of the world's top 10 pharmaceutical companies.

"We will establish an unrevealed foundation for long-term growth, anchored by leading, world-class blockbuster franchises and a premier late-stage pipeline that will accelerate our commitment to build an exceptional, sustainable portfolio"