Botox maker Allergan on Tuesday rejected a sweetened $53 billion takeover offer from Valeant Pharmaceuticals International and activist investor William Ackman, reiterating that it undervalues the company and is too risky for shareholders.
Valeant and Pershing Square Capital Management made a joint bid for the company on April 22 that Allergan also had declined, saying that its plans to slash spending would cost the company growth. It has so far refused to enter deal discussions.
"I think from the first rejection Allergan seemed pretty set on not going forward with the deal and delaying any negotiations or shareholder vote," said Michael Waterhouse, analyst at Morningstar Research.
Ackman, who runs Pershing and has almost a 10 percent stake in Allergan, and Valeant raised their joint offer on May 28 and when investors were displeased and sold shares, added even more cash to it on May 30.