Valeant Ups Salix Offer to $173 per Share

Markets Reuters

Valeant Pharmaceuticals International Inc said it increased its offer for Salix Pharmaceuticals Inc to $10.96 billion in cash, topping Endo International Plc's bid of $10.93 billion in cash and stock for the bowel drug maker.

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Salix has agreed to Valeant's new offer of $173 in cash, which is higher than its previous bid of $158 per share in cash made late last month, the two companies said in a joint statement on Monday.

Endo on Wednesday offered to buy Salix in a deal that was worth about $175 per share in cash and stock. As of Friday's close, Endo's offer was worth $172.56 per share.

Salix shares rose 2.7 percent to $174 in premarket trading on Monday, while Valeant's U.S.-listed shares rose 1.2 percent to $199.80.

Valeant's new offer provides Salix stockholders with about $1 billion more in cash, Valeant said.

Endo, which makes drugs that focus on pain management, had expressed interest in buying Salix on several occasions, but had been rebuffed, sources told Reuters in February.

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Valeant's new offer is calculated based on Salix's 63.33 million shares outstanding as of Feb. 23, according to Thomson Reuters data.

Valeant said its bid gave Salix an enterprise value of about $15.8 billion.

Endo was not immediately available for comment. (Reporting by Ankur Banerjee in Bengaluru; Editing by Savio D'Souza)