Allergan says Valeant's offer overstated tax and R&D savings

Tue May 27, 2014 9:04am EDT
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May 27 (Reuters) - Allergan Inc said on Tuesday Valeant Pharmaceuticals International's $47 billion offer overstated the possible savings from the deal in terms of both research and development and in tax structure.

In slides available on its web site that it says were reviewed by Alvarez & Marsal and FTI Consulting, the botox maker detailed its argument for rejecting Valeant's offer. Valeant and activist investor Bill Ackman made an offer to buy Allergan on April 22, which Allergan spurned.

Allergan said Valeant's low organic sales growth was driven by price increases, that its acquired companies experienced market share erosion and that Valeant lacked transparency in its financial reporting.

Valeant will hold a webcast on Wednesday during which it has said it will raise its offer for Allergan, which was $153 per share at the time of the bid. Investors are looking for a price of $180 to $200 per share, according to an investor survey last week. (Reporting by Caroline Humer; Editing by Bernadette Baum)