Allergan receives unsolicited merger proposal from Valeant Pharmaceuticals International

What will be interesting to watch is the reaction of various United States competition authorities to the proposed purchase of Allergan by Valeant.Michael Pearson, chairman and chief executive officer of Valeant, said: This proposal represents an undeniable opportunity to create extraordinary value for both Allergan and Valeant shareholders by establishing an unrivaled platform with leading positions in ophthalmology, dermatology, aesthetics, dental and the erging markets. Together, we can capitalize on the inherent strengths and complentary portfolios of our two companies, while achieving significant synergies by applying Valeant’s unique operating model to a combined set of assets. While the Allergan chief executive officer and board of directors made it clear, both privately and publicly, that they are unwilling to enter discussions with us about creating a value-enhancing combination, we are hopeful that our proposal for this extrely compelling combination will enable us to engage in productive discussions. Pershing Square, Allergan’s largest shareholder with a 9.7% stake in Allergan, has agreed to elect only stock consideration in the transaction and intends to rain a significant long-term shareholder of the combined company, according to a statent released by Valeant.