Allergan mulling takeover candidates to avert Valeant

|About: Allergan plc (AGN)|By:, SA News Editor

According to the WSJ, Allergan (AGN +3.8%) has approached Salix Pharmaceuticals (SLXP +14%) and at least one other company about a potential buyout in order to thwart Valeant Pharmaceuticals' (VRX +3.7%) pursuit of Allergan. The status of negotiations is unknown, but a deal could be announced as early as next month.

Salix has a market cap of almost $10B. It has generated ~$1.3B in sales over the past 12 months.

Salix itself is involved in a tax inversion deal with a unit of Italian firm Cosmo Pharmaceuticals SpA.

Allergan is highly motivated to move quickly. Sources say that Valeant is close to securing the support of 25% of AGN shareholders required to call a special meeting.