This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Allergan Puts Medicis on the Defensive

Medicis and Inamed had expected their deal to close by the end of the year if they got the necessary approvals. Analysts point out that Medicis could receive a $90 million break-up fee if Inamed walks away.

Allergan, of Irvine, Calif., made its offer just as Medicis was answering questions from the FTC. In a Tuesday filing with the Securities and Exchange Commission, Medicis said it has certified to the agency that it provided "substantially all the information" that had been requested by the FTC.

The FTC review was cited by Allergan's Pyott in his appeal to Inamed's board members and shareholders, contending his company's offer could get cleared easier. To accelerate an FTC review, Pyott said Allergan would agree to immediately shed Inamed's license to Reloxin, a skin treatment similar to Botox. Inamed licensed Reloxin from France's Ipsen.

Allergan's bid "offers greater value to Inamed stockholders and has greater certainty of completion than the pending merger [with Medicis]," Pyott said, predicting the deal could be closed in January.

A Medicis spokeswoman said Wednesday that her company and Inamed have a "legally binding agreement." Medicis "remains confident that Inamed shareholders will see the superior value" of its offer, she said. "We remain fully committed to the deal." She declined to comment on whether Medicis might raise its bid.

The FTC review hasn't been the only impediment to Medicis' offer. The second-largest Inamed shareholder, S.A.C. Capital Advisors, asserted in a Nov. 4 letter to Inamed management that the proposal doesn't provide "full and fair value" to shareholders. S.A.C. owns 2.31 million shares, or 6.4% of Inamed's common stock.

"We see the merits of a potential merger based upon Inamed's strong pipeline and Medicis' distribution network," the firm said. "However, because we believe that Inamed's shareholders are not receiving a just proportion of the new company following the merger, we plan to vote against the [Medicis] merger as it is currently proposed."
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MRX $0.00 0.00%
AGN $218.85 0.00%
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs