``This compelling proposition fits Allergan's strategy to leverage our strengths and solidify our leadership in high- growth specialty markets,'' Allergan Chief Executive Officer David Pyott said in the statement.

Inamed's German shares rose 4.35 euros, or 6.9 percent, to 67 euros ($78.43) at 10:22 a.m. in Frankfurt. They fell 29 cents, or 0.4 percent, to $74.44 in the U.S. yesterday. Allergan shares were indicated to fall 87 cents to 83.88 euros ($98.20) in Germany after closing at $98.85 yesterday in the U.S.

The new bid offers ``greater value'' than Medicis's bid, Pyott said in a letter to Inamed's Chief Executive Nicholas Teti. Allergan will pay a combination of about $1.45 billion in cash and 17.9 million Allergan shares for the company.

Medicis Offer

Medicis, maker of the wrinkle therapy Restylane, in March offered $30 cash and 1.4205 of its shares for each share of Santa Barbara, California-based Inamed.

Connecticut-based hedge-fund manager Cohen, who earlier this year paid $8 million for a shark pickled by U.K. artist Damien Hirst, said the Medicis offer didn't fairly compensate Inamed shareholders. His Nov. 4 letter said SAC owns 6.3 percent of Inamed stock.

Allergan's Pyott has said he's looking to triple the size of the company in the next ten years.

Inamed is seeking U.S. clearance for silicone gel-filled breast implants, a product that's faced restricted sales for 13 years because of safety concerns. The U.S. Food and Drug Administration issued an ``approvable letter'' outlining conditions to be met before unlimited sales can start, in September.

To contact the reporter on this story:
Carey Sargent in Geneva at  at csargent3@bloomberg.net

Last Updated: November 15, 2005 05:05 EST