Allergan Formally Rejects Valeant Offer

For the second time, Allergan, Inc. (NYSE:AGN) has formally rejected the $46 billion unsolicited takeover offer from Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX).  Allergan, which previously rejected a Valeant takeover bid over one year ago, said the deal would create risks for Allergan’s stock holders, Valeant has undervalued Allergan and Valeant’s business model is unsustainable, according to a Wall Street Journal report.

This time Allergan, Inc. (NYSE:AGN) teamed with activist hedge fund manager William Ackman of Pershing Square Capital Management, who acquired a 9.7% stake in Allergan before the deal was announced. Ackman has generated nearly $1 billion in profit on that trade thus far.  Allergan adopted...