Allergan Reiterates Concern On Valeant's Unsustainable Business Model

(RTTNews) - Botox maker Allergan Inc. (AGN) reiterated its belief that Valeant Pharmaceuticals International, Inc.'s (VRX, VRX.TO) business model is unsustainable, and the model relies on serial acquisitions and cost reductions, as opposed to top-line revenue growth and operational excellence. Several third parties have also publicly expressed similar views.

After consulting with its independent financial and legal advisors, Allergan's board unanimously determined that the re-revised unsolicited proposal dated May 30, 2014 by Pershing Square Capital Management, L.P. and Valeant substantially undervalues the Company, creates significant risks and uncertainties for the stockholders of Allergan, and is not in the best interests of the company and its stockholders.

Goldman, Sachs & Co. and BofA Merrill Lynch are serving as financial advisors to the Company and Latham & Watkins, Richards, Layton & Finger, P.A. and Wachtell, Lipton, Rosen & Katz are serving as legal counsel to the Company.