Valeant Pharmaceuticals has submitted a merger proposal to the board of directors of Allergan.
Under the proposal, each Allergan share would be exchanged for $48.30 in cash and 0.83 shares of Valeant common stock, according to a press release from Valeant. Allergan shareholders would be able to choose a mix of cash and shares and would own 43% of the combined company.
The proposal is based on Allergan’s unaffected stock price of $116.63 on April 10. The next day, Pershing Square Capital Management crossed the 5% ownership level in Allergan and commenced a rapid accumulation program, according to the release.
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