UPDATE 3-Valeant says ready to raise Allergan bid to at least $200/share
(Adds quote from Allergan chief executive)
Oct 27 (Reuters) - Valeant Pharmaceuticals International Inc on Monday said in a letter to Allergan Inc's board of directors that it was prepared to raise its offer to at least $200 per share but stopped short of doing so.
Valeant, whose existing offer values the Botox maker at about $179 per share, or $53.25 billion, said last week that the Canadian pharmaceutical company was considering raising the bid and would increase the cash portion of the offer to do so.
"To be clear, Valeant is prepared to improve its offer and provide value to your shareholders of at least $200 a share. We are confident that an increase in our stock price, and in consideration, will provide that value," Valeant Chief Executive Officer Michael Pearson said in the letter.
At $200 per share, the offer would be worth more than $59 billion.
Allergan said the letter was a tactic to distract investors from Allergan third-quarter earnings, which it announced on Monday morning and did not include offer details.
"I think all we saw today was an offer to negotiate," Allergan Chief Executive Officer David Pyott said during a conference call.
Valeant and hedge fund Pershing Square Capital Management launched a hostile offer for Allergan in April, but the Botox maker has staunchly refused it. The company has said that shareholders will be better off if it stays independent or finds its own acquisitions.
Pyott declined to answer questions during the call about whether or not the company is pursuing a "white knight" acquirer for Allergan or its own purchases. Continued...