Cephalon turns down Valeant's hostile $5.7 billion takeover bid

6 April 2011

US drugmaker Cephalon (Nasdaq: CEPH) last evening said that, after a thorough review, its board of directors has formally rejected Canadian group Valeant Pharmaceuticals International’s (TSX: VRX) hostile bid for the company for $73 a share, or a total of some $5.7 billion, saying the offer price was too low and the action was “opportunistic” (The Pharma Letter March 30).

Cephalon also received an alternative proposal from Valeant to acquire the US firm’s non-oncology related assets for $2.8 billion. The firm’s shares, which have risen by nearly 34% since the takeover deal was first disclosed, fell 1.4% to $76.26 at 6:55 pm yesterday in extended Nasdaq trading

In a letter to Valeant chairman and chief executive Michael Pearson, the Cephalon board concluded, after an analysis by its financial and legal advisors, that Valeant's non-binding proposal is inadequate and not in the best interests of Cephalon's shareholders.

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