Valeant’s Improved Allergan Offer Won’t Be An All Cash Deal

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX) has announced it will not make an all-cash bid for drug maker Allergan, Inc. (NYSE:AGN), contrary to the expectations of many people.

Earlier Allergan rejected Valeant’s offer citing the high stock component and steep cost cutting proposals.

Allergan's rejection of Valeant offer

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

Allergan, Inc. teamed...