Valeant approaches Cephalon with buyout offer
Valeant is bidding $73.00 per share in cash, which represents a premium of approximately 29% over Cephalon's 30-day trading average. Valeant group says it prefers "a consensual process" and has made "several private approaches" but "has been disappointed by Cephalon's unwillingness to engage in discussions in a timely manner," according to PharmaTimes.
Valeant chief executive Michael Pearson said "We have taken a close look at Cephalon's business and believe we put forward a very compelling offer." He added that "we are also committed to trying to find additional value if we are allowed to conduct due diligence."
Pearson said "we intend to be disciplined on price" and "if our offer does not have the requisite support of Cephalon's stockholders, we will focus our attention on other opportunities to invest our capital." However, he indicated that the bid could be increased after due diligence.
Cephalon’s board says it will consider the unsolicited proposal. In a letter to Pearson, chief executive of Cephalon Kevin Buchi said "your timing was propitious, since my management team was meeting last week to commence our long range planning process."