Botox maker Allergan is in the final stage of merger talks with an Irish pharmaceutical firm, according to The Wall Street Journal report.
Allergan is in serious negotiations with pharma company Actavis after months of rigorous takeover battle with its hedge fund partner Pershing Square Capital Management and Valeant Pharmaceuticals, according to a report by the Los Angeles Times.
The report said that board of members of both the companies are under advanced stages of talks and are currently holding meetings for the approval of a cash-stock transaction.
Activist investor Bill Ackman, who holds a major stake in Allergan, is in favor of getting it sold to the firms Valeant and Pershing, both founded by him. In this regard, Ackman has been imposing pressure on the Botox maker.
The most recent bid related to Valeant and Pershing for Allergan was USD 53 billion in cash, The Wall Street Journal reports. But the proposed deal was a controversial one as Valeant was accused of hurting the sentiments of the companies by cutting down their budgets for research & development.
If sources are to be believed, a possible agreement between the two- Actavis and Allergan-could be reached by Monday. The combined company formed following the merger would sell an estimated about USD 23 billion a year in brand-name and generic drugs.