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."
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