MONTREAL - Allergan Inc. urged its shareholders Monday to reject a hostile takeover offer by Valeant Pharmaceuticals International Inc. (TSX:VRX) in the latest step in the bitter fight between the companies.
Allergan called the offer grossly inadequate and said it created significant risks and uncertainties for Allergan shareholders.
Valeant, which had tried to negotiate a deal to acquire Allergan, took its offer directly to the company's shareholders last week.
The company has offered US$72 in cash plus 0.83 of a Valeant share for each share of the Botox maker.
The bid values Allergan at more than US$50 billion.
The recommendation is the latest step in the takeover fight which threatens to become a prolonged battle.
Bill Ackman's Pershing Square Capital Management, which is backing the Valeant offer, is also seeking to call a special meeting of Allergan's shareholders to remove six directors.
Pershing owns 9.7 per cent of Allergan.