A new twist in Allergan fight

The Irvine firm is said to be talking to the drug maker as it fights off a takeover bid.

The Botox maker is reportedly interested in buying Salix Pharmaceuticals in a bid to fend off a takeover attempt.

Botox maker Allergan Inc. of Irvine is reportedly interested in acquiring a North Carolina drug maker as part of its effort to fight off a takeover attempt by a Canadian rival.

Investors responded, driving Allergan shares up $6.21, or 4%, to $161.82 on Tuesday.

Allergan’s gain followed a report in the Wall Street Journal that it has had discussions about buying Salix Pharmaceuticals and at least one other company. Salix’s stock rose $21.63, or 16%, to $160.80.

Allergan is fighting a takeover attempt by Valeant Pharmaceuticals International Inc. of Quebec, Canada, and its partner, hedge fund manager Bill Ackman. Valeant has offered $53 billion in cash and stock for Allergan, but the maker of the popular wrinkle treatment Botox has rejected the offer as too low.

Valeant said the deal would be good for Allergan shareholders, saying it would increase the company’s profits by reducing the amount of money it spends on research and taxes.

Salix is merging with Italian drug maker Cosmo Pharmaceuticals, a move that would enable the Raleigh, N.C., company to move its tax address to Ireland.

If Allergan acquired Salix, it might also be able to move its tax address to Ireland and reduce its tax expenses.

Allergan’s interest in Salix comes as the company takes several steps to fight off Valeant’s bid. In July, Allergan said it would slash 1,500 jobs and close two plants in an effort to increase profitability, a direct response to Valeant’s allegations that the company is too fat.

This month, Allergan sued Valeant and Ackman’s hedge fund, Pershing Square Capital Management, accusing them of se- curities fraud. The lawsuit alleged that Pershing Square violated insidertrading laws by buying nearly 10% of Allergan’s stock before announcing that is was partnering with Valeant in an effort to buy Allergan.

Meanwhile, Ackman and Valeant are attempting to call a special meeting of Allergan shareholders to elect new board members who would approve the takeover. The meeting has not been scheduled.