This just in before the weekend. Valenat has upped its offer for Allergan raising it to $72 per share in cash, up from its recently revised bid of $58.30 per share in cash. The stock component was maintained at 0.83 shares of Valeant stock. The offer now values Allergan at $53.3 billion, and still includes a contingent value right of up to $25 per share based on the performance of Allergan's DARPin program. Valeant said the proposal was contingent on "prompt good-faith" negotiations of a merger between the companies, "We want to get this done quick or move on to next victim." See FirstWordPharma and Bloomberg.
I would have to think the improved cash offer will be seen as attractive by some Allergan shareholders -- now we'll have to see how many. Some analysts are already throwing water on it as undervalued and say $185 per share is the "magic number". The improved cash and stock offer is now worth approximately $179.25 per share and values Allergan at $53.3 B (up from original $47 B offer).
Posted by Bruce Lehr May 30th 2014.