Valeant raises purchase price for Allergan and intends to sell skincare business

Source: DXY 2014-6-3 Canadian Valeant company intends to purchase Botox manufacturer Erjian at a price of US $58.30 per share (US $10 higher than the previous one), and sell its skin care business to Nestle for us $1.4 billion In a letter to David pyott, Valeant's chief executive Michael Pearson noted that the change in the acquisition price was based on the response of Elgin's shareholders The biggest obstacle to the acquisition is Aerjian's darpin project for the treatment of ophthalmic diseases, which the company believes will bring about nearly 20 billion market revenue in the next 10 years, and is worried that the acquisition will lead to the reduction of research funding for the project in the future "Valeant plans to spend $400 million on R & D and agrees to appoint an independent director to oversee darpin to ensure successful completion, and will require additional shares if the project is successfully completed," Pearson said It is worth mentioning that Bill Ekman's Pershing square capital management rejected Valeant's bid for Elgin, claiming that each shareholder should hold more than 10% of the shares to have a stronger voice in the transaction Elgin repeatedly stressed that the merger of the two companies would damage each other's interests But Pearson insists pyott and other Elgin board members don't understand Valeant's business model, and earlier this week's report on the rejection was inaccurate In response, Elgin's official document questioned the sustainability of Valeant's future business development, and took the main products of Valeant, Medicis and boshlan, as examples, suggesting that its economic growth mainly depends on price rise to make up for the decline of market share and sales performance The report also points out that Valeant's model of acquiring the company's industry through constant debt will only become more and more difficult due to rising interest rates Valeant's "multiple offshore deferred tax structure" has also been criticized The company continues to reduce taxes through the employment of large trading companies, which may cause potential legal risks Similar to the recent acquisition of Pfizer, the acquisition will win more favorable tax policies for the distribution of American companies in Europe Valeant said it would provide the most solid support for the "investors who still maintain great enthusiasm for M & a" of Elgin, and called on Elgin to come to the negotiation table as soon as possible Original address: http:// / value_sweetens_allergan_offer_