NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) climbed Tuesday as the company pursues a takeover of Allergan (AGN) along with activist investor William Ackman's hedge fund, Pershing Square Capital Management.
On Tuesday, Valeant revealed the details of its takeover bid for the Botox maker. Valeant announced it would trade each Allergan stock for $48.30 in cash and 0.83 shares of Valeant common stock, which would value the offer at approximately $45 billion. Ackman said late Monday that Pershing had acquired most of a 9.7% stake in Allergan for $3.2 billion. The stake is currently all in options and is the largest Ackman has ever taken.
Valeant rose 6.87% to $134.67, an $8.66 increase from its previous close of $126.01, at the close of trading on Tuesday. More than 16.7 million shares changed hands on Tuesday, far greater than the average volume of 1,217,750. The stock had a range of $129.17 to $137.05 for the day and holds a 52-week range of $64.05 to $142.82.