NEW YORK (TheStreet) -- Shares of Valeant Pharmaceuticals Int'l. (VRX) are down -1.91% to $107.08 after ValueAct Capital, a top company shareholder, said it supports Valeant's independent business plan and doesn't believe the drugmaker has to buy Allergan (AGN), according to Reuters.
ValueAct likes a potential combination between Valeant and its takeover target Allergan, but said a drawn-out bidding war might be too distracting, Reuters reports
ValueAct has about a 5.7% stake in Valeant, and is its third biggest investor, according to Thomson Reuters data from May.
Shares of Allergan are down -2.07% to $153.59.
TheStreet Ratings team rates VALEANT PHARMACEUTICALS INTL as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALEANT PHARMACEUTICALS INTL (VRX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and increase in net income. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."