Allergan Adopts Poison Pill

Irvine-based Allergan said late Tuesday evening that it has adopted a one-year, stockholder rights plan--better known to investors as a "poison pill"--after the receipt of an unsolicited bid by Valeant Pharmaceuticals to acquire the company. Allergan said its board of directors has unanimously adopted a one-year stockholder rights plan, and also declared a dividend distribution of one preferred share purchase right for each outstanding share of its common stock. Allergan said the plan is not intended to prevent an acquisition, only to allow its board "adequate time" to assess any proposal. Allergan--which makes Botox--received the unsolicited, $48.1 billion bid from Valeant late Monday.