Valeant Pharmaceuticals International, a multinational specialty pharmaceutical company, has revised its offer for Allergan. Each Allergan share would be exchanged for $72 in cash and 0.83 shares of Valeant common stock, based on the fully diluted number of Allergan shares outstanding. This offer is subject to prompt good faith negotiation of a merger agreement between Valeant and Allergan. 

Shareholders will continue to be able to elect cash and/or Valeant stock, subject to proration. Pershing Square, Allergan's largest shareholder with a 9.7% stake, has agreed to elect only stock consideration in the transaction and exchange its Allergan shares for Valeant shares at a 1.22659 exchange ratio, and receive no cash consideration.

Bill Ackman, CEO of Pershing Square said, "Early this morning, I called and offered to give up $600 million of value to the other Allergan shareholders and exchange our shares for Valeant stock if Valeant were prepared to increase its offer to the other Allergan shareholders. We believe that our gesture to the other Allergan owners makes an extraordinarily strong statement about our belief in the long-term value of this highly strategic business combination. We are delighted that Valeant has agreed to step up for the benefit of all Allergan shareholders.  We look forward to the Allergan board immediately entering into negotiations with Valeant and finalizing this transaction."

J. Michael Pearson, chairman and CEO of Valeant, said, "We believe our revised offer provides enormous value to both Valeant and Allergan shareholders. We strongly believe that applying Valeant's operating philosophy, strategy and financial discipline to a broader set of durable assets will continue to create substantial returns for shareholders over the short, intermediate and long term. We are very committed to getting this deal done, and now are modifying our offer with the assistance of Pershing Square to increase the economics for all Allergan shareholders."