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

Inamed Board Takes Swiss Approach

The Medicis bid for Allergan has been delayed by a request from the Federal Trade Commission for more information. The FTC is supposed to issue an opinion on Dec. 14.

Just to make things interesting, Mentor (MNT) recently made a $2.2 billion unsolicited takeover offer to Medicis, which was immediately rejected . Mentor, based in Santa Barbara, Calif., competes with Inamed in the field of breast implants.

As with any merger agreement, the negotiations between Inamed and Allergan, as well as those between Inamed and Medicis, are filled with a host of conditions. On Tuesday, Allergan said its offer to Inamed was irrevocable as long as certain conditions were met.

For example, Allergan says it needs to conduct additional due diligence on Juvederm, an antiwrinkle product from Inamed that isn't approved for use in the U.S. yet. Allergan says it wants to "confirm that there are no material undisclosed facts" relating to the development and regulatory-approval process in the U.S.

Allergan also wants to make sure that its offer meets the requirement of the previous Inamed-Medicis agreement that allows Inamed to entertain a "superior proposal" without being cited for breaching that agreement.

Allergan says it has talked to the FTC and "is working to develop a satisfactory plan" to divest Inamed's rights to an experimental skin treatment called Reloxin. The drug is similar to Botox, and analysts say it's the key to both Medicis' interest in Inamed and the main regulatory hurdle to Allergan's takeover proposal.

The latest episode had some last-minute drama. Inamed's board actually rejected the Allergan offer because the two sides failed to reach an agreement in time for a Dec. 5 deadline, according to an Inamed filing with the Securities and Exchange Commission. Although the board's vote was unanimous, Inamed told the SEC on Monday that it "continues to be in active negotiations" with Allergan. Today, Allergan sent its updated takeover offer.

Shares of Inamed lost 4 cents to $85.25, and Medicis rose 54 cents to $34.21. Allergan was up $1.39 to $105.17, and Mentor was off 15 cents to $48.12.
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%
IMDC $0.02 0.00%
AGN $320.26 0.00%
AAPL $118.03 0.00%
FB $105.41 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs