Wells Fargo Analyst Michael Ton Says Valeant May Have to Raise Offer for Obagi or Walk Away

In a note from Wells Fargo analyst Michael Ton, concern is being raised over the current $19.75 per share offer from Valeant Pharmaceuticals

for Obagi

. Concerns come from a recent offer by Merz Pharma, which may force Valeant to raise its offer, cut into margins or abandon the acquisition all together. Following the news, Valeant Pharma traded roughly flat, while Obagi traded up 16.24 percent to $22.91.