Jefferies Downgrades Salix Pharmaceuticals As Raised Bid By Valeant Appears Final

In a report published Wednesday, Jefferies analyst David Steinberg downgraded the rating on

from Buy to Hold, but raised the price target from $149.00 to $173.00. In the report, Jefferies noted, "After a litany of suitors cast their bids, SLXP has agreed to be acquired by VRX in an all-cash transaction for $173. Post VRX's initial proposal of $158, we had thought there was a possibility another bid might emerge and indeed ENDP gave it a try. However, given VRX's improved terms and the fact that ENDP rescinded its final offer, we view the likelihood of a successful tender close on or near April 1 as very high. We thus downgrade SLXP from Buy to Hold." Salix Pharmaceuticals closed on Tuesday at $172.48.