Canada's Valeant Pharmaceuticals made a bid to acquire biopharmaceutical company Cephalon for $5.7 billion in cash, and said it would press to install a slate of hand-picked directors to its would-be quarry's board next week.
Valeant Pharmaceutical bids to acquire Cephalon for $5.7 billion
Valeant resorted to airing out its proposed takeover bid after Cephalon's board didn't engage in talks after a series of behind-the-scene overtures.
The proposal by Mississauga, Ontario-based Valeant amounts to $73 a share and represents a 27% premium over Frazer, Penn.-based Cephalon's closing price on Monday. Valeant said it intends to seek shareholder approval to replace Cephalon's board with its own nominees. It also noted that it has received a letter of financing from Goldman Sachs & Co., which it would use to fully fund a Cephalon acquisition.
News of the offer sent Cephalon shares surging Tuesday 24%, or $14.14, to $72.89 in aftermarket trading. The stock ended the regular session up $1.18, or 2.1%, to $58.75.
In a statement, Valeant Chairman and CEO J. Michael Pearson accused Cephalon of being unwilling to engage in discussions over the proposed offer in a timely manner. Cephalon issued a statement late Tuesday saying it intends to consider the unsolicited offer and respond in due course.
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