(Reuters) — Allergan (NYSE:AGN) today said that it’s in discussions with another party, which a source familiar with the situation identified as Actavis (ACT), just days after the company disclosed that it had been approached.
The discussions about a potential merger transaction could lead to "negotiations," Allergan said in a regulatory filing with the Securities & Exchange Commission related to its Dec. 18 meeting with shareholders.
Allergan is fighting a $54 billion hostile takeover by Valeant Pharmaceuticals (NYSE:VRX, TSE:VRX) and Pershing Square Capital Management, saying that Allergan’s growth will be diminished and that Valeant will cut costs too deeply.
Allergan had been holding off on talks with Actavis because it was waiting for a California judge to decide on its request for an injunction to stop William Ackman, head of Pershing Square, from voting at the shareholder meeting, a 2nd source familiar with the situation previously told Reuters.
The judge cleared the path for Ackman to vote his shares earlier this week by ordering Valeant and Pershing to add disclosures to their proxy filing, which the companies said they would.