05/12/2014 08:40 EDT | Updated 07/12/2014 05:59 EDT

Allergan rejects $46B Valeant takeover offer

The maker of Botox has rejected a takeover offer from Laval-based drug company Valeant, saying the $46 billion offer undervalues the company and comes with unacceptable risks.

Allergan Inc. says Valeant's uncertain long-term growth prospects and business model create a risk for Allergan shareholders. The maker of Botox announced a so-called poison pill plan (which makes their shares more expensive to buy out) shortly after Valeant and activist investor Bill Ackman made their offer public last month, 

The offer would exchange each Allergan share for $48.30 in cash and a portion of shares of Valeant Pharmaceuticals International Inc.

Allergan stockholders would own 43 per cent of the combined company under that proposal. Irvine, Calif.-based Allergan has long been a star performer in what's known as the specialty sector of the pharmaceutical industry.