Inamed said directors meeting Wednesday "determined that the Allergan proposal is reasonably likely to result in a 'company superior proposal'" as defined in its March 20 merger agreement with Medicis. The board directed management to evaluate the offer, which comes out to $84 a share in stock and cash.
Medicis' offer was worth $75 a share, or $2.8 billion, when it was made. Medicis, which makes treatments for skin diseases and other products, offered $30 cash plus 1.4205 of its shares.
In touting the superiority of its bid Tuesday, Allergan noted that it's offering a higher component of cash than the Medicis, a more liquid stock, a higher premium and the possibility of quicker completion.