UPDATE: Horizon's hostile $3 billion bid for Depomed still rejected

7 July 2015

Ireland-incorporated Horizon Pharma (Nasdaq: HZNP) early Tuesday announced an unsolicited proposal to acquire all the outstanding shares of Depomed (Nasdaq: DEPO) for $1.75 billion in stock.

Under the terms of the proposal, Horizon agreed to pay a per share consideration of $29.25 in an all-stock, tax-free exchange valued at around $3.0 billion. Horizon's proposal represents a premium of 42% to the closing price of Depomed on July 6, 2015. The transaction, if consummated, would be immediately and substantially accretive to Horizon's adjusted diluted earnings per share. Depomed shareholders would own 25% of the combined firm.

Horizon Pharma’s shares rose 2.8% to $35.75 before the bell on Tuesday. Trading in Depomed shares was halted, however, the stock rocketed 37.2% to $28.32 when trading resumed. The hostile bid comes not long since Horizon completed its $1.1 billion acquisition of Hyperion Therapeutics (The Pharma Letter March 30).

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