TORONTO _ The Toronto stock market opened lower amid news that the board at Botox-maker Allergan Inc. (NYSE: AGN, Stock Forum) has unanimously rejected an improved takeover offer by Quebec-based Valeant Pharmaceuticals International Inc. (TSX: T.VRX, Stock Forum)
The S&P/TSX composite index fell 5.76 points to 14,865.45. The Canadian dollar was almost unchanged, up slightly by 0.02 of a cent to 91.70 cents US.
Allergan says Valeant's offer undervalues the California-based company and creates significant risks and uncertainties for its shareholders.
Earlier this month, with the backing of activist shareholder Bill Ackman, Valeant raised its stock-and-cash bid to about US$180 per share, valuing Allergan at more than US$54 billion.
Allergan repeated its claim that Valeant's has an unsustainable business model that relies on ``serial'' acquisitions and cost reductions, as opposed to revenue growth and operational excellence.
Meanwhile, Wall Street took back some gains at the open, as the Dow Jones industrials dropped seven points to 16,936.10, the Nasdaq fell 5.78 points to 4,330.46, while the S&P 500 index dipped 2.56 points to 1,948.71.