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 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.