UPDATE 3-Valeant goes hostile, to launch Allergan exchange offer this week
(Adds Allergan comment)
By Rod Nickel
June 17 (Reuters) - Valeant Pharmaceuticals Inc said on Tuesday it will launch an exchange offer for Allergan Inc this week, allowing it to eventually take the unsolicited bid directly to shareholders.
Botox-maker Allergan has rejected Valeant's offer of cash and shares, but Valeant Chief Executive Officer Mike Pearson said he sees no reason to adjust the bid a third time. Valeant shares have lost ground for 10 straight sessions through Monday, reducing the value of its Allergan bid to about $50.8 billion from $53.8 billion on May 30.
"Hostile is not our preferred approach," Pearson said. "But this deal was so strategic and financially compelling that it really makes sense."
Valeant's stock is "artificially depressed," Pearson said, after weeks of criticism by Allergan and some analysts.
Shares of Valeant rose 0.2 percent at $118 on the New York Stock Exchange in early trading. Allergan stock was up 0.5 percent at $160.12.
Valeant held a webcast to rebut Allergan's latest criticism and clarify steps toward a hostile takeover, which could drag into 2015.
Allergan's biggest shareholder, Pershing Square Capital Management, intends to mail proxy materials as early as this month to seek a special meeting later this year to change most of Allergan's board, Valeant said. Continued...