Actavis reportedly prepares new merger bid for Allergan

Actavis is believed to be preparing to launch a new merger bid for Botox manufacturer Allergan.

This is according to an exclusive report from Reuters published today (October 8th). Citing unnamed sources close to the deal, Allergan – which has rejected repeated approaches from Valeant Pharmaceuticals International – would consider a proposal that values it at more than $200 (£125) per share.

Although there has not yet been any formal contact between the two companies, Actavis has reportedly held informal conversations with Allergan and is believed to be set to engage with its management team later this week.

The takeover battle launched by Valeant has been ongoing for several months and has been the subject of a legal challenge amid claims of insider trading.

Actavis regularly reviews potential acquisitions and reportedly believes Allergan offers the best opportunity currently available. Industry analysts cited by Reuters suggested the two firms would provide a better cultural fit than any deal involving Valeant, as the companies' respective chief executives are known to share a focus on research and development.