Valeant Pharmaceuticals boosts its unsolicited acquisition offer for Allergan to $53.3 billion, hoping to win shareholders with a steep premium.
Valeant Pharmaceuticals (NYSE:VRX, TSE:VRX) again increased its offer to Allergan (NYSE:AGN) shareholders, hoping to win them over with steep premiums as the company remains stalwart in refusing to open up to acquisition talks.
The new offer prompted an after-hours spike in AGN's shares, which were up to $168.58 as of about 5:40 p.m., a 6.9% increase over this morning's open at $157.66.
Valeant is now offering $72 per share, up from the $58.50 offer made earlier this week, which was in turn an increase over the initial $48.30 bid made last month. Analysts at BMO Capital Markets called the sweetened offer a "strange and unexpected twist" in the tumultuous history of the hostile takeover attempt.
"Just two days after Valeant CEO Mike Pearson said 'I will assure you we are not going to keep offering against ourselves,' he is doing just that," BMO analysts David Maris wrote today. "If Valeant management indicates the revised bid is in reaction to some Valeant shareholders wanting the proposed deal, we understand why Valeant shareholders covet Allergan's balance sheet and growth."
Maris further added that the new Valeant offer "substantially undervalues Allergan."
Here's a look at some of the top Wall Street stories for medical device companies this week:...
Abiomed says it's come to an agreement with the FDA on an indication for its flagship Impella 2.5...
Medtronic and Covidien say their pending, $43 billion merger is expected to close in early 2015.
Biomet agrees to pay more than $6 million to settle False Claims Act charges that it paid doctors to...