Valeant takes its offer directly to shareholders of Botox maker Allergan

LAVAL, – Valeant Pharmaceuticals International Inc. is making its case directly to shareholders of Botox-maker Allergan for a takeover of the California company.

Valeant is formally appealing to shareholders after Allergan’s board of directors refused offers from the Quebec-based company to negotiate a deal.

It has offered US$72 in cash plus 0.83 of a Valeant share for each share of Allergan (NYSE:AGN).

At Wednesday’s opening price US$118.96, that would value Allergan’s shares at $170.75, making the offer worth just more than US$50 billion.

Valeant (TSX:VRX) has said it sees no need to raise its offer again for Allergan, even though the company’s refusal to negotiate has hurt its share price and reduced the value of its bid.

Chief executive Michael Pearson has said that he expects Valeant’s share price will recover as it takes its offer directly to Allergan shareholders and bidding partner Bill Ackman of Pershing Square Capital Management pushes for a special meeting to vote on the removal of some Allergan directors.