Allergan Inc. is nearing a deal to be acquired by the Irish company Actavis, which would prevent a hostile takeover by Valiant Pharmaceuticals International. If one company wants to acquire another, and the board of directors of the target company is against the acquisition, it is called a hostile takeover attempt.
According to unnamed sources familiar with the matter, the deal worth up to $65.5 billion could be announced as early as Monday.
Valeant’s most recent offer would pay $183.39 for each share of Allergen. However, Actavis is willing to pay a lot more. According to Thomson Reuters, Actavis could offer between $215 and $220 per share, with the final price likely to be at the high end of that range.
Allergan shareholders are scheduled to vote next month on a proposal by Valiant to remove the majority of the company’s board and replace them with people likely to go through with the sale.
So far executives at Allergen have been unhappy with Valeant’s proposal to cut the amount of money the it would spend on research, which would cause thousands of people to be laid off.
According to analysts, if the Actavis deal is not completed by the meeting shareholder meeting on December 18, then Allergen is likely to ask shareholders to reject the proposal by Valiant and let the company complete its deal with Actavis.
Valeant and Pershing Square Capital Management (its hedge-fund partner), have been trying to acquire Allergen for six months now, however all offers have been considered too low.