UPDATE 5-Valeant, Ackman offer to buy Botox maker Allergan for $47 bln

Tue Apr 22, 2014 10:41pm EDT
 
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(Adds Allergan adopting shareholder rights plan in paragraph 5)

By Rod Nickel and Bill Berkrot

April 22 (Reuters) - Canada's Valeant Pharmaceuticals International Inc said on Tuesday it and activist investor Bill Ackman made an unsolicited $47 billion bid to buy Botox maker Allergan Inc as it seeks to become one of the world's five biggest drug companies.

The offer, if successful, would bring together two mid-sized pharmaceutical companies with expertise in skin care and eye care products, and is highly unusual as activist investors typically buy stakes and then agitate for strategic change.

Ackman's Pershing Square Capital Management, Allergan's largest shareholder with a 9.7 percent stake, disclosed in a filing on Monday it is supporting the bid.

Allergan said in a statement that it has received the offer, and will carefully consider the proposal and "pursue the course of action that it believes is in the best interests of the company's stockholders."

Late on Tuesday, Allergan said it adopted a shareholder rights plan effective April 22 that will trigger if a person or group acquires 10 percent or more of its shares.

Valeant offered to pay $48.30 a share in cash and 0.83 of its common share for each Allergan share, valuing Allergan at $152.88 a share, a premium of over 7 percent to the company's closing price on Monday.

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