July 21 (Reuters) - Investor William Ackman, who owns nearly 10 percent of Botox maker Allergan Inc, said on Monday that the likelihood of Valeant Pharmaceuticals International Inc succeeding in its hostile takeover for Allergan increased on Monday.
The spread on the deal - or the difference between the value of the two companies’ shares and the ratio implied by the deal’s terms - had narrowed, indicating that investors believed a deal was closer, Ackman said during an interview on CNBC.
Ackman’s Pershing Square Capital Management and Valeant made a joint offer for Allergan in April, which the company has rejected. The spread on the deal was below 3 percent on Monday. Ackman said that was a drop of 50 basis points. (Reporting by Caroline Humer; Editing by Chris Reese)