Valeant Pharmaceuticals is preparing to officially launch its long-promised hostile takeover bid for Allergan (NYSE:AGN), aiming to solicit support from Allergan shareholders to host a special meeting outside of the company’s control.
Valeant has been hoping for weeks to get Allergan’s shareholders on its side in supporting an unrequited acquisition attempt valued at more than $53 billion. Allergan has been batting back the unsolicited offer, saying that it believes it can do better on its own and casting occasional aspersions on Valeant’s corporate history.
Valeant, in cooperation with activist investor William Ackman and the Pershing Square hedge fund, aims to offer Allergan stockholders a significant premium to turn over their shares. The fervent buyers have made several attempts to hold negotiate directly with Allergan, but to no avail.. Earlier this month Allergan’s board unanimously rejected Valeant’s twice sweetened bid to acquire the Botox-maker for $53.3 billion.
Following the rejection, Valeant threatened to take Allergan to court to ensure that the medical device company won’t swallow the "poison pill" measure it adopted in response to the special shareholder meeting.
Allergan’s board adopted the poison pill strategy in April in order to insulate the company from a hostile takeover attempt. The 1-year measure would trigger the release of a raft of purchase rights, significantly diluting Allergan shareholders, should any one investor take 10% or more of the the company. Pershing acquired 9.7% of AGN’s shares in April.