Valeant says may raise Allergan bid; beats on profit
By Rod Nickel and Ashutosh Pandey
(Reuters) - Valeant Pharmaceuticals International Inc VRX.TO VRX.N said on Monday that it may raise its bid for Botox maker Allergan Inc AGN.N after the Canadian company posted a better-than-expected quarterly profit.
Valeant CEO Michael Pearson said a possible revised stock and cash bid would be worth more than $200 per share, assuming that Valeant's stock rises, and would include more cash. The current bid is worth about $52.7 billion or $176 per share.
Shares of Laval, Quebec-based Valeant were up 3 percent at C$139.51 in Toronto on Monday. Allergan stock was up 1.7 percent at $180.45.
Valeant's third-quarter results were keenly anticipated for their potential impact on Valeant's bid for Allergan, maker of anti-wrinkle injection Botox. Unlike most quarters in which, according to critics, one-time charges related to acquisitions obscure Valeant's performance, the company made few deals as it stalked Allergan.
"When people have time to reflect on our performance this quarter, it hopefully goes a long way of convincing the Allergan shareholders that our currency is actually a great stock to own," Pearson told Reuters.
He said Valeant is considering adding more cash to its bid, and could make a decision on it at any time.
"We have some money in our pocket," he said.
Pearson expects that once it becomes clear Valeant will win Allergan, Valeant's stock will rise, adding further value to the bid. Continued...