ISTA Pharma Surges after Valeant Ups Acquisition Price
Valeant Pharma announced that it has increased from $6.50 to $7.50 per share in cash the proposed price of its previously announced offer to acquire ISTA Pharmaceuticals.
Valeant also communicated to ISTA that Valeant believed that it could achieve a price of up to $8.50 per share, assuming that ISTA provides it selected confirmatory due diligence related to the company that is consistent with what Valeant expects to see. Valeant reaffirmed that its proposal would only remain open until January 31, 2012.
Since December 16, 2011, the date on which Valeant publicly announced its proposal to acquire ISTA at $6.50 per share in cash, ISTA's stock has traded in a range significantly higher than in the months prior to that announcement.
The proposed price of $7.50 per share represents a premium of approximately 94% over ISTA's 60-day volume weighted trading average of $3.87 on December 15, 2011, the last trading day before Valeant's public announcement of its offer. An $8.50 per share price would constitute a premium of approximately 120%.
Currently, shares of ISTA Pharma are trading up over 12% at $8.18.
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