People familiar with the situation reported that Actavis Plc is approaching the finalization of a deal with Allergan Inc. estimated to more than $64 billion. The deal is to allow Allergan to fend off a hostile takeover bid from Valeant Pharmaceuticals International Inc.
The people, who asked not to be identified because the information is still not public, reported that a deal between the companies may be announced very soon. One person revealed that Actavis is to pay a price of more than $215 per share in cash and stock for Allergan. This offer would include a larger percentage of cash in comparison to the current takeover bid of Valeant.
As the sources pointed out, the boards of the two companies are to hold a meeting in the upcoming days in order to review the cash-and-stock takeover deal. The official announcement of the transaction is expected until the end of the week, as Actavis and Allergan have reached an agreement over all crucial details of a stock and cash deal.
The rivalry between Allergan and Valeant has been going on for a few months, but has recently become more fierce than ever, especially because of unpleasant public debates.
Actavis and Allergan have not reached a final agreement yet. Actavis is willing to pay a price closer to $200 per share, while Allergan is trying to boost it to more than $210.
Mr. David Belian, a spokesman of Actavis, did not respond to the requests to make a comment in regard to the situation. The spokeswoman of Allergan, Bonnie Jacobs, did not respond to phone and e-mail requests for comment.
Actavis Plc was 0.89% up to close at $243.77 per share on Friday, marking a one-year increase of 47.50%. The company is valued at $64.61 billion. According to CNN Money, the 21 analysts offering 12-month price forecasts for Actavis Plc have a median target of $277.00, with a high estimate of $310.00 and a low estimate of $210.00. The median estimate represents a +13.63% increase from the last price of $243.77.
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