ISTA Pharmaceuticals Inc. (ISTA)

[Kenswift]

This is what all that insider buying as about.

Valeant Makes Public Its Interest In Buying ISTA Pharmaceuticals

Valeant Pharmaceuticals International Inc. (VRX) is proposing to acquire Irvine, Calif.-based ISTA Pharmaceuticals Inc. (ISTA), a pharmaceutical company with eye-care and allergy drugs, for $6.50 a share in cash.

Valeant said its proposed offer is worth about $327 million including net debt, and represents a premium of about 67% over ISTA's closing price Thursday of $3.89.

The Mississauga, Ont. drug company said ISTA rebuffed its initial overtures, made in early October, prompting Valeant to make a formal written proposal to ISTA's management on Nov. 23. It later reaffirmed the proposal, but said ISTA rejected it on Dec. 14. That led Valeant to publicly unveil its proposal Friday.

The offer will only remain in effect until Jan. 31, Valeant said.

It's been a busy last few months for Valeant in terms of acquisitions. It's buying Australia's iNova Pharmaceuticals and recently completed the purchase of Calgary's Afexa Life Sciences Inc. Both were friendly deals.

-By Carolyn King, Dow Jones Newswires; 416-306-2100; [e-mail]