Allergan’s Inamed Bid Is Said to Outdo Rival’s

Cosmetic surgery product maker Inamed Corp. said Tuesday that its board of directors had concluded that a proposed $3.2-billion takeover bid from Botox maker Allergan Inc. was superior to an earlier offer it had accepted from Medicis Pharmaceutical Corp.

But Inamed said it would remain neutral on the Allergan offer, abstaining from making any recommendations to its shareholders, until its pending pact with Medicis was terminated.

Inamed also said Allergan had put forth a revised offer and agreement that were “materially different” from its initial offer, although Allergan’s original offer of $84 in cash, or 0.8498 of a share of common Allergan stock, for each Inamed share remains unchanged.

Under the terms of Allergan’s proposal, Inamed can approve and execute the deal anytime through Dec. 31.

Santa Barbara-based Inamed agreed in March to be acquired by Scottsdale, Ariz.-based Medicis in a cash and stock deal then worth $2.8 billion, valuing Inamed at about $75 a share.

Last month, Medicis asked Inamed’s board to recommend that its shareholders reject the competing offer by Irvine-based Allergan.

At the time, Medicis said it would have the right to terminate its offer and collect a $90-million penalty if Inamed’s board did not recommend that shareholders reject the Allergan offer by Tuesday.

Medicis issued a brief statement Tuesday, saying: “We are evaluating our alternatives and will proceed in the best interests of Medicis shareholders.”

Inamed shares fell 4 cents to $85.25, while Allergan rose $1.39 to $105.17. Medicis rose 54 cents to $34.21.