Skip to main content

Market Overview

Valeant Raises Salix Bid, Agree To All-Cash Deal

Share:

Valeant Pharmaceuticals Intl Inc (NYSE: VRX) has raised its bid for Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP) to $173 per share from $158 per share. The move counters an offer of $172.50 that Endo International plc (NASDAQ: ENDP) offered last week.

The Wall Street Journal reported that Salix has agreed to the all-cash deal.

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.

Shares of Valeant were up more than 1 percent in pre-market trade.

Shares of Salix were halted, but jumped almost 3 percent to $174 shortly after 8:30 a.m. ET.

 

Related Articles (SLXP)

View Comments and Join the Discussion!

Posted-In: Bill Ackman Pershing Square Capital Management Wall Street JournalM&A News Media

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com