Valeant Raises Bid for Salix Pharma to $173

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Valeant Pharmaceuticals Intl Inc VRX will raise its bid for Salix Pharmaceuticals, Ltd. SLXP to $173 per share from $158 per share. The move counters an offer of $172.50 that Endo International plc ENDP offered last week.

Endo's bid would take more time and require a vote of its shareholders before it closed. However, Valeant's deal is all-cash. Activist investor Bill Ackman of Pershing Square Capital Management said last week on CNBC that Valeant will not "overpay" for Salix. Pershing Square has a 5 percent stake in Valeant.

In the new deal, Valeant is only required to maintain its off until May 1, while Salix will owe Valeant $450 million if Salix takes another deal.

Valeant is less than 1 percent higher in premarket trade. As can be expected, Salix jumped 1.5 percent to $172.

Posted In: NewsM&ABill AckmanPershing Square Capital Management
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