Botox maker's stock soars amid $45 billion bid

NEW YORK — If there are any wrinkles in a massive $45 billion bid for the maker of Botox, investors in the company aren't seeing any. Allergan stock is skyrocketing.

Valeant Pharmaceuticals and Allergan's biggest stockholder, activist investor Bill Ackman, seek a cash-and-stock deal for the Irvine, Calif., drugmaker that could be worth about $45 billion.

Allergan stock soared on the news, jumping 15.3% to $163.65. Valeant stock jumped 7.5% to $135.41.

"This proposal represents an undeniable opportunity to create extraordinary value for both Allergan and Valeant shareholders by establishing an unrivaled platform with leading positions in ophthalmology, dermatology, aesthetics, dental and the emerging markets," Valeant CEO J. Michael Pearson said in a statement.

But will Allergan management go along with the deal? Maybe not, Pearson acknowledged.

He said that Allergan CEO David Pyott and the company's board of directors "made it clear, both privately and publicly, that they were unwilling to enter discussions with us."

But, Pearson said, "we are hopeful that our proposal for this extremely compelling combination will enable us to engage in productive discussions."

The takeover target said on its website that "Allergan has had no discussions with either Valeant or Pershing Square" -- Ackman's investment company -- "with respect to this matter."

The company's board "intends to evaluate any such offer or proposal, if received, in consultation with its financial and legal advisors," the Allergan statement said.

Allergan also makes drugs for eye ailments such as dry eye, glaucoma and retinal disease, as well as anti-itch and skin care products, in addition to breast implants for augmentation and reconstructive surgery.

Each Allergan share would be exchanged for $48.30 in cash and 0.83 shares of Valeant common stock. Shareholders can choose a mix of cash and stock.

Allergan stockholders will own 43% of the combined company.

Ackman's Pershing Square Capital Management LP — Allergan's biggest stockholder at 9.7% — has agreed to take only stock in the transaction.

Valeant, based in the Montreal suburb of Laval, is one of Canada's largest pharmaceutical companies.

The Associated Press contributed.