Allergan rejects Valeant and Ackman's raised takeover offer

June 10 Tue Jun 10, 2014 8:40am EDT

June 10 (Reuters) - Botox maker Allergan Inc on Tuesday rejected a sweetened $53 billion takeover offer from Valeant Pharmaceuticals International and activist investor William Ackman, reiterating that it undervalues the company and is too risky for shareholders.

Valeant and Pershing Square Capital Management made a joint bid for the company on April 22 that Allergan also had declined, saying that its plans to slash spending would cost the company growth. It has so far refused to enter deal discussions.

Ackman, who runs Pershing and has almost a 10 percent stake in Allergan, and Valeant on May 28 raised their joint offer and when investors were displeased and sold shares, added even more cash to it on May 30.

"We do not believe your latest proposal offers sufficient or certain value to warrant discussions between Allergan and Valeant," Allergan Chief Executive Officer David Pyott said in a letter to Valeant CEO Michael Pearson. (Reporting by Caroline Humer; Editing by Chizu Nomiyama)

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