Allergan confirms receipt of Valeant Pharmaceuticals takeover bid

Allergan has confirmed that fellow healthcare firm Valeant Pharmaceuticals has launched a bid to acquire the company.

The merger proposal values Allergan at almost $50 billion (29.78 billion pounds) and is unsolicited, with Allergan's chief executive and board of directors previously indicating their unwillingness to consider a takeover.

However, Valeant believes its offer can deliver considerable value for both parties, creating a new business with leading positions in the ophthalmology, dermatology and aesthetics markets.

The combined entity would be expected to generate high single-digit organic growth for the foreseeable future and benefit from numerous operational and strategic synergies.

Michael Pearson, chairman and chief executive officer of Valeant, said: "This proposal represents an undeniable opportunity to create extraordinary value for both Allergan and Valeant shareholders by establishing an unrivaled platform with leading positions in ophthalmology, dermatology, aesthetics, dental and the emerging markets."

Allergan's board of directors is now considering the terms of the acquisition and will take a course of action that it believes will best serve its stockholders' interests.