According to a Wall Street Journal report that references sources familiar with the matter, Irish pharmaceutical firm Actavis PLC (ACT) and the maker of Botox Allergan, Inc. (AGN) are close to a $62.5 billion merger deal. Under the proposed terms of the transaction, Actavis would pay more than $210 a share, these sources said.
By striking a friendly deal with Actavis, Allergan is hoping Canadian drugmaker Valeant Pharmaceuticals (VRX), which has said is willing to pay at least $200 a share, and Allergan’s largest shareholder, investor Bill Ackman will finally give up their monthslong hostile takeover campaign.
Allergan said earlier this month it was in active takeover talks with Actavis. Bloomberg reported on Wednesday that merger talks between the two companies were focused on narrowing a gap of about $3 billion, with Actavis wanting to pay about $60 billion and Allergan hoping for $63 billion.
The announcement of a merger could come as early as Monday.
Allergan shares gained $2.44, or 1.24%, to $198.65 at the close in New York on Friday, giving the Irvine, California-based company a market cap of about $59.18B.