Allergan Said to Have Received Bid from Actavis

Botox maker Allergan, which is fighting a hostile takeover bid by Valeant Pharmaceutical, is said to have been approached about a potential transaction by another party.

The news agency Reuters quoted sources as saying the bidder is UK drugmaker Actavis.

Valeant and Pershing Square Capital Management, the investment vehicle of activist investor Bill Ackman, own nearly 10% stake of Allergan and have offered $55 billion to take control of the company.

Allergan is trying to convince investors that Valeant's plan for cost-cutting is too extreme.

Reuters reported in early October that Actavis, which had already reached out to Allergan once in the prior months, was planning a second approach to the company with an offer worth more than $200 per share.

Valeant, whose cash-and-stock offer is worth about $182 per share, recently said it was prepared to raise its offer so that it also would be worth around $200 per share.

Bill Ackman and Pershing Square have forced a special meeting of Allergan shareholders, now scheduled for Dec. 18.