Endo submits offer to purchase Salix Pharmaceuticals for about US$15.7bn
Higher bid than Valeant's offer of $14.5bn in February
Dublin-headquartered speciality healthcare company Endo International has put in a bid to acquire Salix Pharmaceuticals for approximately US$15.7bn, which is higher than Valeant's offer of $14.5bn made on 22 February.
A fortnight ago, Quebec, Canada-based Valeant offered $158 a share for Salix, the US-based manufacturer of intestinal drugs. Endo is offering $175 a share in a cash-and-stock bid.
Valeant responsed to Endo's unsolicited offer to acquire Salix by saying it was 'firmly committed to our all-cash agreed transaction', which it said delivered 'immediate and certain value to Salix shareholders'.
Valeant's tender offer expires at the end of the day on 31 March, and the company said it expects to be in the position to close the deal on 1 April.
In a letter to Salix's Board of Directors, Rajiv De Silva, President and Chief Executive of Endo, said Endo's offer 'is substantially superior to the pending Salix-Valeant transaction' because it delivers 'far more value to Salix's stockholders and 'provides further upside potential through a material equity component' of about 40% in the combined company.
