Associate

In another thwarted deal, Allergan (Irvine, California) made an offer for Inamed (Santa Barbara, California) in early December that ended up sinking the established bid for the company by Medicis Pharmaceutical (Scottsdale, Arizona).

After Allergan made its $3.2 billion pitch for the breast implant maker, which topped by some 16% the original $2.5 billion offer first proposed by Medicis last March, Inamed’s board issued a statement that it had found the Allergan offer to be a “superior proposal.” In mid-December, Inamed reported that it had terminated the agreement with Medicis, which received a $90 million break-up fee, plus another $481,985 in expense and reimbursement fees, for its troubles.

“The Inamed board is supportive of the Allergan offer and expects to consider final approval of the Allergan agreement and plan of merger shortly,” said Nicholas Teti, CEO and chairman of Inamed.

“Allergan is delighted that Inamed’s board supports our offer and recommends that Inamed stockholders tender their Inamed shares pursuant to Allergan’s exchange offer upon execution of the merger agreement,” said David Pyott, Allergan’s chairman, president and CEO. “Our companies are making good progress toward completing this transaction.”

Under the exchange offer, Allergan would exchange for each outstanding share of Inamed, either $84 in cash or 0.8498 of a share of Allergan common stock, at the election of the holder. Under the plan, 45% of the aggregate Inamed shares tendered would be exchanged for cash and 55% of the shares tendered would be exchanged for shares of Allergan common stock.