IRVINE, Calif. (AP) -- Botox maker Allergan is rejecting a takeover bid from Valeant Pharmaceuticals, saying that the unsolicited $46 billion offer undervalues the company and carries significant risk.
Shortly after Canada's Valeant and activist investor Bill Ackman made their offer public last month, Valeant announced a so-called poison pill plan, a defensive tactic that makes a buyout prohibitively expensive.
Valeant and Ackman offered to exchange each Allergan share for $48.30 in cash and a portion of shares of Valeant Pharmaceuticals International Inc.
Allergan stockholders would own 43 percent of the combined company under that proposal. Allergan Inc. says Valeant's uncertain long-term growth prospects and business model create a risk for Allergan shareholders.
Allergan Inc., based in Irvine, has long been considered one of the star performers in the specialty pharmaceutical sector.