Valeant Announces Webcast Addressing Allergan Shareholders

Valeant Pharmaceuticals earningsSee page for author [Public domain], via Wikimedia Commons

Today Valeant Pharmaceuticals Intl Inc (NYSE:VRX) continued its pursuit of Allergan, Inc. (NYSE:AGN), saying it won’t go away until Allergan shareholders say they don’t want a merger. The drug maker issued a response to Allergan’s rejection of its offer to merge at a price of $48.30 per share in cash and .83 shares of Valeant stock per Allergan share.

Allergan refuses discussion with Valeant

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) released a letter it wrote to shareholders of Allergan, Inc. (NYSE:AGN). The company noted that it received the rejection yesterday and that Allergan did not hold discussions with it before rejecting the proposal. Valeant accused Allergan of “attempting it discredit” it in yesterday’s conference call while discussing a “business-as-usual strategy.” Valeant said the “silver lining” of this approach is that shareholders of Allergan have two options to choose between.

The drug maker is planning a webcast for May 28 following their annual shareholders’ meeting and board meeting. The company said it will talk about why it thinks its offer is “substantially superior to Allergan, Inc. (NYSE:AGN)’s current strategy of going it alone. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) said it will also talk about the short, intermediate and long-term benefits for Allergan shareholders.

Valeant meets with Allergan shareholders

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) noted that “traditionalists” have questioned its operating model for the last six years since it began. The company plans to offer Allergan, Inc. (NYSE:AGN) shareholders more details about the operating model, transaction costs and business strategy. Valeant will also address Allergan’s concerns about the transaction, which the company raised yesterday in its webcast.

The drug maker said it remains “resolute” in succeeding in merging with Allergan, Inc. (NYSE:AGN) and noted that management has already met with many of Allergan’s shareholders. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) said based on feedback from Allergan shareholders at the May 28 webcast, it plans to increase its offer for Allergan. Valeant said it is “prepared to pay a full and fair price” but that it will “remain financially disciplined.” The company also said it wouldn’t stop pursing Allergan until the company’s shareholders expressly state that they prefer Allergan’s strategy rather than a merger with Valeant.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at

Be the first to comment on "Valeant Announces Webcast Addressing Allergan Shareholders"

Leave a comment

Your email address will not be published.