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Valeant Reportedly Planning To Raise Bid For Salix; Working With Pershing Square & ValueAct Capital To Finance Offer


Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP) seems to have become an object of desire in the pharmaceutical world. Over the past few days, Endo International PLC (NASDAQ: ENDP) and Valeant Pharmaceuticals Intl Inc (NYSE: VRX) have been “fighting” to acquire the company; Valeant has already had an agreement to purchase Salix for roughly $10 billion ($158 per share).

Endo is allegedly offering $170-$175 per share to purchase Salix. In response to Endo’s bid, Valeant sent a letter to Salix’s board on Thursday indicating that it would offer $175 per share for Salix in a stock and cash financed deal.

Related Link: Why Valeant, Not Endo, Could Still Win The War For Salix

The New York Times on Friday reported a source familiar with the matter said that Valeant is planning to team up with Pershing Square Capital Management, ValueAct Capital and other top shareholders to raise its bid for Salix. The source said that the new offer will surpass $160 per share and will consist entirely of cash.

Although Endo’s offer faces several hurdles for approval, it sent Salix shares higher.

“The Salix board is meeting on Saturday to consider the rival offers, these people said. The chief concern for the board members is whether a deal would provide certainty for the company’s shareholders. That would suggest they may be leaning toward accepting an all-cash offer that does not require a vote," NYT said.

"To finance the increased offer, Valeant is turning to top shareholders, including Pershing Square, the hedge fund run by William A. Ackman. Earlier this month, it emerged that Pershing Square had taken a nearly 5 percent stake in Valeant but pledged to remain a passive investor."


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Posted-In: New York TimesNews Rumors Media

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