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Allergan Owners Left Wanting More From Valeant: Real M&A

Valeant Pharmaceuticals International Inc.’s bid for Allergan Inc. gives the maker of Botox a valuation it hasn’t had since early 2008 -- and investors still expect more.

Allergan shares yesterday climbed 1.8 percent above Valeant’s cash-and-stock offer, signaling traders are anticipating a higher bid. Valeant’s proposal stood at $48 billion, or almost $161 a share, and when announced, valued Allergan at 21 times its profit, according to data compiled by Bloomberg. Sterne Agee Group Inc. said the offer is too low because Allergan has appealing growth prospects as a stand-alone entity. Shareholders may demand a price closer to $180 a share, said Cowen Group Inc.