Biotech Values

[DewDiligence]

SLXP drops tax-inversion merger with Cosmo:

http://online.wsj.com/articles/salix-cosmo-cancel-merger-agreement-1412319533

Salix Pharmaceuticals Ltd. and the Italian parent company of drug maker Cosmo Technologies Ltd. said Friday they had terminated a previously announced $2.7 billion merger agreement—a deal that had been structured as a so-called inversion… As part of the decision to end the deal, Salix said it would pay Cosmo a $25 million breakup fee.

…Since that deal was signed…Allergan Inc. has pursued Salix in an effort to thwart a $53 billion unsolicited takeover attempt by Valeant Pharmaceuticals International Inc. [#msg-105542318].

Meanwhile, Bloomberg is reporting that the AGN-SLXP talks are stalled (http://www.bloomberg.com/news/2014-10-03/allergan-tips-to-valeant-in-deal-chain-reaction-real-m-a.html ) and that SLXP is in merger discussions with ACT, who recently made an all-cash offer for AGN (#msg-106508359).

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