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Allergan board turns down Valeant takeover offer

IRVINE, Calif. (AP) -- Botox maker Allergan is rejecting a takeover bid from Valeant Pharmaceuticals, saying that the unsolicited bid worth nearly $46 billion undervalues the company and carries significant risk.

Shortly after Canada's Valeant and activist investor Bill Ackman made their offer public last month, Allergan announced a so-called poison pill plan, a defensive tactic that makes a buyout prohibitively expensive.

The offer would 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, based in Irvine, has long been considered one of the star performers in the specialty pharmaceutical sector.

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