NEW YORK (TheStreet) -- Shares of Allergan, Inc. (AGN) are up 0.20% to $169.56 this morning after it was reported that the company may take on debt to buy back its own shares as part of its plan to fight off a $53 billion takeover bid by Valeant Pharmaceuticals International Inc. (VRX) and the activist investor William Ackman, Reuters reports.
The company is also considering making acquisitions of its own and more spending cuts to increase shareholder value, CEO David Pyott told Reuters, outlining steps to build support for Allergan to remain a standalone company.
But Valeant says it already has enough shareholders on its side to call a special meeting to replace Allergan board members with nominees who support its takeover proposal. To do so the company needs support of the holders of at least 25% of the shares, Reuters noted.
TheStreet Ratings team rates ALLERGAN INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLERGAN INC (AGN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."