Biotech Values

[mr_o]

Valeant lifts all-cash bid to $173/share

Valeant Pharmaceuticals International Inc. has recut its agreed deal to buy Salix Pharmaceuticals International Inc., increasing the price to $173 a share, or about $11.1 billion, according to people familiar with the matter.

The amended agreement is meant to fend off a rival cash-and-stock bid lobbed in last week by Endo International PLC. That bid was worth about $172.50 at Friday’s close, and could take longer to close and face more uncertainty as it requires a vote of Endo’s shareholders.

As part of the recut deal, Salix increased by $100 million, to about $450 million, the breakup fee it would owe Valeant if Salix walked away, the people said. That change makes another topping bid by Endo more expensive.

Salix also agreed to shorten from Aug. 20 to May 1 the date until which Valeant must keep its offer on the table, the people said.

http://www.wsj.com/articles/valeant-raises-salix-offer-price-1426507294?mod=WSJ_hp_LEFTTopStories