In a letter to its shareholders, the specialty pharmaceutical company Valeant Pharmaceuticals International, Inc. said it plans “to improve” its offer for the specialty pharmaceutical company Allergan Inc. following the rejection by Allergan’s board of directors earlier this week on May 12, 2014  week of Valeant’s bid of  $48.30 in cash and 0.83 shares of Valeant common stock for each Allergan share or approximately $45.6 billion.

“We plan to improve our offer for the company–to demonstrate our commitment to getting this deal done,” said Valeant Pharmaceuticals Chairman and CEO J. Michael Pearson in the letter to the company’s shareholders, presented on May 13, 2014. “We are prepared to pay a full and fair price, but, consistent with our track record, we will remain financially disciplined.”

Subsequent to the company’s annual shareholders meeting and its board meeting next week, the company plans to hold a webcast on May 28th to discuss why “we believe that our offer is substantially superior to an Allergan “go it alone” strategy,” said Pearson in the shareholder letter. “On the call, we will discuss why our proposal offers greater short, intermediate, and long-term shareholder value by managing Allergan’s assets under Valeant’s operating model. Traditionalists have questioned our operating model since we began our journey more than six years ago. We will provide further details about our operating model, business strategy, and transaction cost synergies, in addition to addressing the concerns raised yesterday by Allergan on its webcast.”

Earlier this week, Allergan Chairman and CEO outlined the reasons for rejecting Valeant’s bid. “After careful review and consideration, our Board of Directors has unanimously determined that Valeant’s unsolicited proposal substantially undervalues Allergan and does not reflect the value of the Company’s leading market positions, sales and marketing foundation, industry-leading research and development efforts, as well as future revenue and earnings growth. Allergan has a long history of producing consistent growth and delivering solid results through a combination of innovation, execution and discipline. We are confident in our ability to extend our track record, enthusiastic about the opportunities before us, and believe Allergan is well positioned to deliver compelling value to our stockholders. Furthermore, the Board has determined that Valeant’s proposal creates significant risks and uncertainties for Allergan’s stockholders and believes that the Valeant business model is not sustainable.”

Source: Valeant Pharmaceuticals and Allergan