UPDATE 3-Allergan says has been approached by another party about a deal

Mon Nov 3, 2014 2:33pm EST
 
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(Adds Actavis to lead, details, updates stock prices)

By Caroline Humer and Nadia Damouni

Nov 3 (Reuters) - Botox maker Allergan Inc, fighting a hostile takeover bid by Valeant Pharmaceuticals Inc, said on Monday it was approached about a potential transaction by another party, identified as Actavis Plc by a source familiar with the situation.

Valeant and Pershing Square Capital Management, which owns nearly a 10 percent stake in Allergan, made an offer that is now worth $55 billion for Allergan.

Allergan has been fighting a six-month-old takeover battle with Valeant and is trying to convince investors that Valeant's plan for cost-cutting is too extreme.

Reuters reported in early October that Actavis, which had already reached out to Allergan once in the prior months, was planning a second approach to the company with an offer worth more than $200 per share.

Last week during a conference call with analysts, Allergan Chief Executive Officer David Pyott was asked if the company had received an offer from another party besides Valeant. He responded that he could not comment on "any particular market rumor."

It was not clear if Allergan's disclosure on Monday referred to a new approach or to one of the older overtures.

Valeant, whose cash-and-stock offer is worth about $182 per share, recently said it was prepared to raise its offer so that it would be worth around $200 per share.   Continued...