Allergan Spikes Higher On Acquisition Report

After plummeting at the opening bell, Allergan, Inc. AGN spiked higher Wednesday as Bloomberg reported that Actavis Plc ACT was in talks to acquire Allergan "for at least $60 billion, or more than $200 a share."

The report noted that the "companies may be able to reach a deal this month...as Allergan seeks to fend off a hostile bid from Valeant Pharmaceuticals International Inc.

"Valeant has said it’s willing to pay at least $200 a share for Allergan and has the backing of Allergan’s largest shareholder - activist investor Bill Ackman’s Pershing Square Capital Management LP.

"Allergan has described Valeant’s offers as “grossly inadequate” and argued the Canadian company would gut its research and development budget and use its cash flow to pay down debt accumulated from previous acquisitions."

Allergan recently traded at $197.00, up 0.85 percent, while Actavis traded down 0.73 percent at $241.84.