Valeant Pharmaceuticals International Inc on Monday said in a letter to Allergan Inc's board of directors that it was prepared to raise its offer to at least $200 per share but stopped short of actually doing so.
Valeant, whose existing offer values the Botox maker at about $179 per share, or $53.25 billion, said last week that the Canadian pharmaceutical company was considering raising the bid and would increase the cash portion of the offer to do so.
"To be clear, Valeant is prepared to improve its offer and provide value to your shareholders of at least $200 a share. We are confident that an increase in our stock price, and in consideration, will provide that value," Valeant Chief Executive Officer Michael Pearson said in the letter.
At $200 per share, the offer would be worth more than $59 billion.
An Allergan spokesman did not have an immediate comment.
Valeant and hedge fund Pershing Square Capital Management launched a hostile offer for Allergan in April, but the Botox maker has staunchly refused it. The company has said that shareholders will be better off if it stays independent or finds its own acquisitions.
Allergan will hold a shareholder meeting on Dec. 18 at the request of investors who own more than 35 percent of the company's stock, including Pershing Square head William Ackman. At the meeting, investors will vote on new directors put forth by Ackman and to open discussions on the deal.
On Monday, the company reported a third-quarter profit of $1.78 per share, excluding items. On Oct. 9, the company preannounced those earnings and said that it would report a profit that was more than 20 percent higher than it had previously expected, in the range of $1.
76 to $1.78 per share.Allergan also raised the outlook for the current quarter, saying it now expects earnings of $1.80 to $1.83 per share, and for the year of $6.27 to $6.30 per share.
Allergan's shares were up 1.7 percent at $187.31 in premarket trading on Monday. Valeant shares were unchanged after closing at $129.13 on the New York Stock Exchange on Friday.
Allergan shares have gained about 30 percent since April 22, when Valeant, in partnership with Bill Ackman's Pershing Square Capital Management, made its bid public for the company.