Allergan's board of directors unanimously rejected the $53.5bn offer from Valeant Pharmaceuticals International, and William Ackman's Pershing Square investment group.
"Valeant's revised proposal substantially under-values Allergan, creates significant risks and uncertainties for Allergan's shareholders and does not reflect the company's financial strength, future revenue and earnings growth or research and development," David Pyott, Allergan's Chairman and Chief Executive, said in a statement.
On a buying spree in the past four years, the Canadian company first made an unsolicited cash-and-share buyout offer in April, valuing Allergan at $45.6bn.
It then raised the offer to about $50bn in May and when that was rejected, increased it again to $53.5bn.
Allergan alleged that Valeant's unsustainable business model relies on acquisitions and cost reductions, as opposed to top-line revenue growth and operational excellence.
Source: AFP via I-Net Bridge
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