Quebec's Valeant sweetens Allergan bid to $50B - Action News
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Quebec's Valeant sweetens Allergan bid to $50B

Canadian drug giant Valeant Pharmaceuticals is beautifying its bid for Botox maker Allergan, raising the stakes to about $50 billion in cash and stock.

Allergan to 'carefully review' revised offer after rejecting initial $46 billion bid last month

Quebec-based Valeant Pharmaceuticals has injected more cash into its offer for California drug maker Allergan, the maker of Botox.

Canadian drug giant Valeant Pharmaceuticals is beautifying its bid for Botox maker Allergan, raising the stakesto about$50 billion in cash and stock.

The Quebec-based companywill now put up an extra $10 cash per share for the California drug maker to $58.50 an increase of 21 per cent.The stock component will stayat 0.83 of aValeantshare.

Valeantalso said it will also commit up to $400 million to invest inAllergan'sDARPin, a drug at the trial stage that treats blindness in the elderly.

Initial bid spurned

Valeant's first offer of $46Blast month was made with activist investor Bill Ackman, whose firmPershing Square Capital Management LP holds9.7 per cent of Allergan. The bid was rejected as being grossly undervalued.

Although Allergan said Wednesday it will "carefully review and consider" the revised proposal, it waspreemptively on the defence. In an investor presentation Tuesday, the company attacked Valeant'sacquisition-dependent business model, warning Valeant's"limited experience with large, global-scale products represents a material execution risk attempting to grow Allergan's categories and launching significant new large products through existing channels."

Valeant deal with Nestl

In a separate announcement,Valeantsaid it's alsoselling some of its skincare products to Nestlfor $1.4 billion. Those include antidotes for frown lines and wrinkles, a sale that could help Valeant clear some regulatory hurdles in acquiring the Botox anti-wrinkle drug.

Both Valeant and Allergan shares were trading over threeper cent lower in early trading.

With files from The Associated Press