Allergan Reiterates Opposition to Valeant Bid

Allergan Inc. reiterated its opposition to Valeant Pharmaceuticals International Inc.'s $53 billion hostile takeover offer, despite the recent calls from big shareholders to start negotiating.

Valeant has been trying to buy Allergan since April, in conjunction with Bill Ackman's Pershing Square Capital Management LP, in one of the year's most contentious takeover battles.

In a news release Monday, Allergan said "there has recently been significant and potentially distracting market speculation regarding Allergan" and as a result the board thought it was necessary to "reiterate our unanimous perspective."

Mutual fund giant T. Rowe Price Group, Allergan's second largest shareholder, on Friday urged Allergan to allow shareholders to vote on any major acquisitions.

Meanwhile, Allergan's 10th-biggest holder, Pentwater Capital Management, sent a letter last week that accused the board of having "grown increasingly hostile toward its own shareholders" and pushed the board to negotiate with Valeant and Actavis PLC.

The Wall Street Journal has reported Allergan rebuffed an approach by Actavis, which was interested in a takeover. The Journal has also said Allergan is in advanced talks to acquire Salix Pharmaceuticals Ltd. That deal, likely worth $10 billion, could make Allergan too large and complicated for Valeant to buy.

Mr. Ackman, whose Pershing Square is Allergan's largest shareholder with a 9.7% stake, has threatened to sue if Allergan signs a deal without giving shareholders a vote or without negotiating with Valeant.

Allergan also pointed on Monday to its strong second-quarter performance and raised guidance, as well as a restrucuturing program unveiled in July that aims to reduce annual costs by $475 million.

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