Actavis (ACT) shares were down 1.2%, while Allergan Inc. (AGN) shares edged up 0.6% after a report from Bloomberg stated that the former is in discussions to acquire the latter for a deal worth at least $60 billion. Allergan is also being pursued by Valeant Pharmaceuticals International, Inc. (VRX).
Actavis Eyes Allergan
As per the Bloomberg report, Actavis is willing to pay a price closer to $200 per share, while Allergan is demanding more than $210 per share. Both companies, however, are trying to come to an agreement, which could be announced by the end of November.
Actavis has made several big acquisitions in the last couple of years, including the $25 billion Forest Laboratories acquisition.
Valeant-Allergan Scuffle Continues
Meanwhile, Valeant has been relentless in its pursuit of Allergan since Apr 2014. In its latest letter sent to Allergan, it said that it is ready to offer at least $200 per share to acquire Allergan.
However, Allergan continues to believe that Valeant’s offer substantially undervalues the company, creates significant risks and uncertainties for its stockholders, and thus is not in the best interest of either the company or its shareholders.
Allergan plans to hold a special meeting of its stockholders on Dec 18, 2014. Allergan shareholders are scheduled to vote on Dec 18 on a Valeant proposal to remove a majority of Allergan's board and replace them with directors who would approve a sale to Valeant.
Valeant to Expand with Zoetis?
Zoetis (ZTS) shares were riding high after a report from The Wall Street Journal indicated a possibility of Valeant acquiring Zoetis. Zoetis is one of the largest companies in the animal-health industry and boasts of a robust and diversified product portfolio. The company expects to generate revenues in the range of $4.7 billion to $4.75 billion in 2014.
Investor focus is expected to remain on updates relating to the possible Actavis – Allergan, Valeant – Allergan and Valeant – Zoetis transactions.
Allergan currently carries a Zacks Rank #2 (Buy) while Valeant sports a Zacks Rank #1 (Strong Buy).
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