Zoetis Eyed For Acquisition By Valeant Pharmaceuticals

Zoetis Inc ZTS closed up more than 11 percent Thursday on a report that its the target of takeover interest by Valeant Pharmaceuticals Intl Inc VRX.

'It isn't clear what the company's reaction to the approach was, if any, or whether it is open to a sale," according to the report, which appeared in The Wall Street Journal.

Zoetis, a veterinary medicines company, has seen its shares rise more than 28 percent year-to-date, giving it a market capitalization of $27.53 billion.

Shares were trading up another 2 percent in Friday's pre-market session.

Activist investor Bill Ackman took an 8.5 percent stake in Zoetis in November, prompting speculation that the company might be put up for sale.

Zoetis has since added two board members backed by Ackman, and last month said it would cut its staff by 25 percent in part of a cost-cutting plan aimed at shaving annual costs by $300 million within two years.

Valeant, with a market cap of $82.4 billion, has made at least a couple of dozen acquisitions in the past five years, including its $11 billion deal for Salix Pharmaceuticals completed in April.

Laval, Quebec-based Valeant is also reportedly in the late stages of talks to acquire Amoun Pharmaceutical Co. of Egypt for between $700 million and $800 million.

Amoun makes both human and veterinary medicines.