Actavis plc (ACT) Has A New Merger Plan for Allergan, Inc. (AGN)

After battling with Valeant Pharmaceuticals Intl Inc (NYSE:VRX) to avoid a takeover, Allergan, Inc. (NYSE:AGN) should prepare itself for a takeover possibility from Actavis plc (NYSE:ACT). According to the sources, Actavis is likely to approach Allergan for a potential merger.

This is not the first time when Actavis plc (NYSE:ACT) has initiated similar efforts and the two companies had several informal conversations concerning the merger. The company might plan to reinitiate its efforts within this week itself. As per the sources, Allergan, Inc. (NYSE:AGN) is likely to accept an offer that values it at $200 per share and the company has rejected several takeover proposals from Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and William Ackman.

Actavis plc (ACT)

Both Ackman and Valeant are planning to raise their proposal to $190 in their new bid. There is a possibility that Valeant might increase its bet after the third quarter 2014 earnings on October 20. Even after facing a hostile takeover attempt from Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Allergan has not reached out to other potential buyers rather, the pharmaceutical giant focused on cutting its operating costs and boosting it revenue.

Earlier, Allergan, Inc. (NYSE:AGN) scheduled shareholder meeting on December 18, 2014 after losing to the takeover efforts of Valeant calling for a shareholder meeting. The pharmaceutical has been fighting to remain independent for the past several months and the company even accused the two hostile partners of illicit trading to acquire its shares. However, nothing has worked so far for the company.

On the contrary, Pershing Square and Valeant Pharmaceuticals plan to install some board members to push the company for a merger. At the same time, Allergan has faced opposition from its shareholders for a potential acquisition, as the combined unit would be too large to be pursued by Valeant Pharmaceuticals.

This article has been written by Prakash Pandey.

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