Allergan Board Unanimously Rebuffs Valeant's Revised Unsolicited Proposal

(RTTNews) - Following its discussion with its independent financial and legal advisors, Allergan Inc.'s (AGN) board has unanimously determined that the revised unsolicited proposal dated May 30, 2014 by Pershing Square Capital Management, L.P. and Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) substantially undervalues the firm, creates significant risks and uncertainties for the stockholders of Allergan, and is not in the best interests of the company and its shareholders.

Allergan's Chairman and Chief Executive stated: Valeant's revised proposal substantially undervalues Allergan, creates significant risks and uncertainties for Allergan's stockholders and does not reflect the Company's financial strength, future revenue and earnings growth or industry-leading R&D."

He added, "Allergan has a track record of generating consistently robust results and value for its stockholders, and we continue to have strong momentum in our business. The investment community has recognized the revised long-term growth outlook Allergan provided on May 12, 2014 and appropriately raised valuations for a standalone Allergan. We do not believe Valeant's proposal reflects Allergan's growth prospects, nor does it offer sufficient or certain value to warrant discussions between Allergan and Valeant."

Further, Allergan believes that its plan would create double digit sales growth and earnings per share compounded annual growth of 20 percent, and nearly $14 billion in additional free cash flow over the next 5 years.