Endo Withdraws Salix Offer After Valeant Raises Its Bid

Endo International has withdrawn its stock-and-cash offer for Salix Pharmaceuticals after Valeant Pharmaceuticals raised its Salix bid from $158 per share to $173 per share.

The moves seemingly end a nine-month battle for Raleigh-based Salix, which has become an extremely attractive acquisition target in a rapidly consolidating pharmaceutical industry.

The major beneficiaries of the tug-of-war have been Salix shareholders.

Valeant’s revised all-cash offer price of roughly $11.1 billion represents an additional $1 billion for Salix shareholders. Including Salix’s debt, the deal is valued at $15.8 billion.

Valeant now expects to close the acquisition on April 1. If all the conditions for closing the deal aren’t satisfied by end of day April 8, the offer price will drop back to $158 per share.

Valeant also made a potential deal with Endo even more challenging by raising the termination fee that Salix must pay to Valeant in the event the deal falls through by $100 million to $456 million.

Valeant was forced to raise its bid after Endo offered last week to buy Salix for $175 per share in mostly stock and some cash. The offer sent Salix shares up 7 percent.

“We are pleased that the enhanced offer price recognizes the value of Salix as the leading gastrointestinal specialty pharmaceutical company and delivers to our stakeholders all cash consideration in the near future,” Thomas D’Alonzo, chairman of Salix’s board, said in a statement.

On Monday, Salix shares rose $3.35, or 2 percent, to $172.75.

This article appeared in print in the March 17th, 2015 edition of Hamodia.