Valeant goes hostile and offers $73/share for Cephalon; withdrawn

Taking its offer directly to investors, Valeant Pharmaceuticals International Inc. (focuses on skin and CNS drugs) has publicly announced a $73 per-share cash bid (a 30% premium) for Cephalon Inc., valuing the top-tier biotech at $5.5bn, or almost twice its 2010 sales. Valeant plans to finance the transaction using debt, and wants to replace Cephalon’s board with its own nominees. Beginning earlier this month, Valeant privately approached Cephalon three times, but Valeant says the target did not want to enter into further discussions in a timely manner, and that Cephalon’s CEO believed the board would consider the offer too low.