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MONTREAL – The board of directors of Botox-maker Allergan has unanimously rejected an improved takeover offer by Quebec-based Valeant Pharmaceuticals Inc. (TSX:VRX).

Allergan says the offer under values the California-based company and creates significant risks and uncertainties for its shareholders.

Earlier this month, with the backing of activist shareholder Bill Ackman, Valeant raised its stock-and-cash bid to about US$180 per share, valuing Allergan at more than US$54 billion.

Allergan repeated its claim that Valeant’s has an unsustainable business model that relies on “serial” acquisitions and cost reductions, as opposed to revenue growth and operational excellence.

The U.S. company also says it expects to achieve double-digit sales growth and earnings per share compounded annual growth of 20 per cent over the next five years.

Ackman, Allergan’s largest shareholder, has moved to call a special meeting of shareholders at the U.S. company in a bid to replace a majority of its directors.

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