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Botox maker expected to receive higher takeover bid


Monday, October 20th, 2014
News

The company behind Botox looks like it is still facing a hostile takeover bid. Botox is the anti-wrinkle treatment that was once the preserve of the rich and famous. Now it is used by people in all walks of life making Allergan a hot target.

The hunter is the Canadian based Valeant Pharmaceuticals. It has a $52.7 billion bid on the table for Allergan Inc. That is $176 a share.

Allergan is resisting the bid claiming that Valeant doesn't have a sustainable business model. It also thought the bid was too low.

But Valeant has just posted some better than expected results. Total revenue for the third quarter of 2014 was $2.1 billion which is an increase of 33% on the previous year.

This financial performance prompted the Valeant CEO Michael Pearson to say an increased offer for Allergan could be made in the near future, providing the value of his company's stock continues to rise. The increased offer could be as much as $200 a share and could include more cash.

The key date in the saga is likely to be the 18th December. This is when a special shareholder meeting at Allergan is taking place. At that meeting there is expected to be a vote where individuals against the deal with Valeant could be voted off the board.



Article by Damien M

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



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Tags: allergan, valleant
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