Allergan rejects Valeant Pharma's 'cut and slash' takeover

[riky]

Allergan rejects Valeant Pharma's 'cut and slash' takeover

<p><a href="http://news.yahoo.com/allergan-rejects-valeant-pharmas-takeover-bid-111407948--finance.html"><img src="http://l3.yimg.com/bt/api/res/1.2/9VsBcQ_P5wLO5J1PUzbFuQ--/YXBwaWQ9eW5ld3M7Zmk9ZmlsbDtoPTg2O3E9NzU7dz0xMzA-/http://globalfinance.zenfs.com/images/FR_AHTTP_REUTERS_OLFRBUS_WRAPPER_H_LIVE/2014-04-28T201209Z_1007120001_LYNXMPEA3R0PG_RTROPTP_3_OFRBS-ALLERGAN-SHIRE_original.jpg" width="130" height="86" alt="ALLERGAN, LE FABRICANT DU BOTOX, PRÉPARERAIT UNE NOUVELLE OFFENSIVE SUR L’IRLANDAIS SHIRE" align="left" title="ALLERGAN, LE FABRICANT DU BOTOX, PRÉPARERAIT UNE NOUVELLE OFFENSIVE SUR L’IRLANDAIS SHIRE" border="0" /></a>U.S. drugmaker Allergan Inc on Monday rejected Valeant Pharmaceuticals International Inc's $47 billion takeover offer, saying its proposed cost cuts were too steep. Allergan, which makes the popular anti-wrinkle treatment Botox, said it believed Valeant's business model was unsustainable and that the offer was too risky because of uncertainty about the company's long-term growth. \&quot;Valeant's model of cutting and slashing really doesn't work for more than a very short period of time,\&quot; Allergan Chief Executive Officer David Pyott said during a conference call with investors to explain the rejection. He said Valeant's plan for billions of dollars in cost cuts would prevent Allergan from delivering growth that it could produce on its own, and he set a target of a 20 percent to 25 percent increase in earnings per share in 2015.</p><br clear="all"/>

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