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Allergan seeks deal with Salix to fend off Valeant: report
By Reuters
Tuesday, August 19, 2014 Email this story  |  News Tracker  |  Reprints  |  Printable Version

IRVINE, Calif. (Reuters)—Botox maker Allergan Inc. has approached Salix Pharmaceuticals Ltd. and at least one other company about a potential takeover in a bid to avert the $53 billion hostile takeover from Valeant Pharmaceuticals International Inc., The Wall Street Journal reported.

Allergan and Salix declined to comment on the matter.

The share price of Salix, which itself is in the process of merging with a unit of Swiss-listed Cosmo Pharmaceuticals, jumped about 10 percent on Tuesday [Aug. 19].

It isn't clear where any talks with Salix stand, but one of the sources said Allergan could strike a takeover deal with the company or another unknown party as early as next month, the Journal said.

Raleigh, North Carolina-based Salix makes products used to prevent or treat gastrointestinal disorders. So far, it has generated sales of $766.4 million this year.

Cosmo said in July it would merge its Irish subsidiary with Salix, another example of overseas deal-making by U.S. companies seeking to lower their tax bill by shifting tax domiciles abroad.

William Ackman's hedge fund, Pershing Square Capital Management, which owns nearly 10 percent of Allergan, worked with Valeant to put together the takeover deal unveiled in April.

By Natalie Grover and Amrutha Penumudi in Bangalore

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