Allergan Says Approached By Another Party Regarding A Potential Transaction

(RTTNews) - Botox maker Allergan Inc. (AGN), which is being pursued by Canadian drugmaker Valeant Pharmaceuticals International (VRX, VRX.TO), said it has been approached by another party regarding a potential transaction.

The company did not provide details about the approach, as it believes such disclosures could jeopardize continuation of any discussions or negotiation.

The information was provided in a letter to stockholders ahead of the December 18 special meeting that was filed with the Securities and Exchange Commission.

Allergan is being pursued by Valeant for months now. Valeant, along with billionaire investor William Ackman's hedge fund Pershing Square, started a takeover battle in April by making a bid to acquire Allergan for $46 billion in cash and stock. Pershing Square is the largest shareholder in Allergan with a 9.7 percent stake.

Valeant later sweetened its bid to about $53 billion. However, Allergan repeatedly spurned the offers stating it grossly undervalued the company. Allergan called Valeant's business model unsustainable and said that a deal with Valeant would hurt its research and development program.

Last week, Valeant said it is prepared to improve its offer and provide a value of at least $200 per share to Allergan shareholders.

The latest offer was made on the day Allergan announced its quarterly results, which prompted Allergan to state that Valeant's letter was simply a tactic to distract investors from Allergan's outstanding third-quarter results.

Meanwhile, media reports indicate Irish pharmaceutical company Actavis Plc. (ACT) has shown interest in Allergan.

AGN closed up 1.6 percent on Monday at $193.14.