Valeant Pharmaceuticals International Inc. said it extended its offer to purchase Allergan Inc. until the end of the year, after an initial deadline for its tender offer was scheduled to expire today.
Valeant has joined with the hedge fund Pershing Square Capital Management on a $54 billion takeover bid for Allergan, the maker of Botox. Allergan has repeatedly rejected the offer and sued Valeant, claiming the drugmaker colluded with the fund to profit from insider trades ahead of the offer.
Valeant and Pershing Square called the lawsuit a “desperate attempt to delay or avoid” a shareholder meeting requested by Pershing Square founder Bill Ackman, according to a statement in response to the suit.
Valeant seeks Irvine, California-based Allergan in order to expand its portfolio and become one of the world’s largest drug makers. David Pyott, Allergan’s chief executive officer, announced a restructuring including cutting 1,500 jobs as he attempts to persuade shareholders to keep the company independent.
Two shareholder advisory groups have recommended that Allergan investors back the special meeting pushed by Ackman, who needs at least 25 percent to agree to the meeting. The activist investor wants to add six new Allergan board members and push through a deal with Valeant.
Valeant, based in Laval, Quebec, has offered $72 in cash and 0.83 of a Valeant share for each Allergan share. About 12.5 million Allergan shares had been tendered as of 9 a.m. New York time today, Valeant said in its statement. Allergan has 307.6 million shares outstanding, according to data compiled by Bloomberg.