Actavis Plc wants negotiations with Allergan, Inc. (NYSE:AGN) about a probable merger since the Botox manufacturer aims to grab this buying opportunity, according to reliable resources. In the past, Allergan has repeatedly declined bids from Valeant Pharmaceuticals Inc (NYSE:VRX).  The company, however, might consider this takeover bid as it will increase company’s share value to more than $200 per share.

Recent months have witnessed informal negotiations between Actavis and Allergan, Inc. (NYSE:AGN) on the possibility of a merger. However, till date there is no formal commitment between the companies, but this week Actavis is expected to put force behind the proposal and might approach its management team to convey its eagerness. Since Valeant and its partner William Ackman are considering an increase of about $15 per share in their offer, chances are that this might enhance the value of Allergan to $190 per share or more.  Valeant intended to announce a higher bid on Oct 20 but the value and timing of this bid might change.  Despite handling such moves from Valeant, Allergan, Inc. (NYSE:AGN) has still not considered other prospective buyers and is concentrating on finding additional areas of growth and internal cost reduction.

Serious interest shown by Actavis has further complicated the Valeant and Allergan takeover battle. Allergan, Inc. (NYSE:AGN) has already accused the Canadian drug maker Valeant’s and its investor Ackman of insider trading and has taken up the legal challenge.  Allergan’s value stands at more than $55 billion after its shares register 1.7 percent increase closing at $186.20 on NYSE.  Actavis with market capitalization of $64 billion closed at $243.39 per share.; whereas Valeant Pharmaceuticals Inc (NYSE:VRX) shares value declined by 2.5 percent closing at $175.94 with total market value of $52.8 billion. The company however is hopeful that its share value will significantly increase with the announcement of its earning in the next week.  Thus investors will make its new enhanced offer value well beyond $195 per share touching $200. Average share price of Allergan is estimated at $200 per share according to Thomson Reuters poll of 16 analysts.

A special shareholder meeting has been planned at Allergan on Dec 18 and its top investor Bill Ackman from Pershing Square Capital Management who is hopeful to place new board members with an aim to get their support towards the takeover bid from Canadian Valeant with whom Pershing Square has formed a team. Actavis has to face this management challenge for its acquisition of Allergan, Inc. (NYSE:AGN). Industry executives believe that merger of Allergan with Actavis is more suitable since their cultural environment is similar.  In addition, both companies CEOs, David Pyott and Brent Saunders, both care about R&D in contrast to Valeant CEO Mike Pearson who believes in cutting cost.

Allergan, Inc. (NYSE:AGN) has refused Valeant Pharmaceuticals Inc (NYSE:VRX) and Pershing Square bid on April 22^nd and announced cost cuts while convincing their shareholders that they will be better as an independent entity through additional acquisitions. But the shareholders are aggressively resisting this move fearing that large acquisitions would make Valeant Pharmaceuticals Inc much larger and costly.

Unidentified sources claim that negotiations between Allergan Inc. (NYSE:AGN) and Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) went cold because Salix demanded more than what Allergan was willing to pay for the deal. Even though discussions are open again but it is too soon to say whether some agreement will be made between the two parties or not; therefore no immediate result of these discussions should be expected at this point. Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) stock ended yesterday’s trading at a value of $10 billion.

Allergan Inc. (NYSE:AGN)’s main goal for making an offer to Salix was to save itself from hostile takeover from Valeant. This acquisition will require Valeant to spend more money in order to acquire Allergan, which might force Valeant to rethink its decision.

Valeant is not the only company interested in Allergan Inc. (NYSE:AGN). Actavis Plc. also expressed an interest in acquiring Allergan back in August. The offer made by Actavis was as unappealing to Allergan as the one made by Valeant. Actavis also believes that this acquisition can help them grow in the pharmaceutical sector.

Allergan Inc. (NYSE:AGN), Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) and Actavis representative refused to comment on their current position in the matter.

David Pyott, CEO of Allergan Inc. (NYSE:AGN) said that Allergan currently has many options when it comes to acquisitions.

Valeant sought help from Pershing Square Capital Management LP’s Bill Ackman back in April to have its offer worth $54 billion accepted by Allergan; the $54 billion was to be paid in cash and stock. However Allergan turned the offer down after which Valeant made two more offers that were higher than the initial one.

Allergan Inc. (NYSE:AGN)’s stock went up by 50% in 2014. The closing value of its shares on Monday was $166.12, which made its total market value worth $51 billion. On the other hand Salix went up by 78% in 2014; the company is currently in the process of a merger with Cosmo Pharmaceuticals SpA – an Italian Drugmaker company.

Cosmo’s CFO Chris Tanner said that they have no idea about the discussions going on between Allergan and Salix. Cosmo’s merger with Salix may come to a halt if the deal between Salix and Allergan gets finalized.

Tanner believes that Cosmo’s merger with Salix will be a good move for the company; however at the moment they are not letting the current scenario affect their day to day operations.

Allergan Inc. (NYSE:AGN) stock opened today at a value of $166.95 and at 10:53 am EDT was trading at a value of $170, after taking a jump up by 2.33%. The stock’s market cap is 50.50 B whereas its inst. ownership is 94%. Allergan Inc. (NYSE:AGN)’s range over 52 weeks has been between 88.34 and 174.49.