In the ongoing hostile pursuit to take over Allergan, major shareholder in the company, Bill Ackman and Valeant just don’t seem ready to quit, even though the company has been doing quite well, thank you, without Valeant or Ackman.
Allergan, the maker of Botox, reported strong earnings, with total revenues up 16%, net income rising 4% and EPS up 3%. All of its segments saw a double digit rise in sales, with Botox up 15%, Eyecare rising 14% and medical devices increasing 36%.
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In the meantime, Valeant said it would raise its offer for Allergan to at least $200 a share, as reported by Reuters, on condition that Allergan’s share price would increase. The previous bid was for $179, and the revised offer would include more cash. However, David Pyott, CEO of Allergan, thinks the letter was meant to distract investors from Allergan’s earnings, and was not an actual commitment to raise the bid. David Pyott, on CNBC’s Mad Money indicated that he is dedicated to return capital to shareholders and is cutting costs. He said that the company has enough cash to make acquisitions on its own, although it is not actively looking.
