J. Michael Pearson, CEO Valeant, writes to Cephalon shareholders that it will be willing to raise its offer (modestly) from $73 per share if Cephalon management lets them see the books for due diligence. Sounds similar to Sanofi speaking to Genzyme, No?
He also mentions that if he can't close the deal by May 12th. He'll pick up his $5.7 billion ball and go home. He notes that he'd still like to acquire Cephalon as a friendly suitor, but needs the Cephalon board to negotiate openly and to remove a poison pill inserted after Valeant made its offer.
Valeant is now taking its case directly to shareholders to elect its new slate of board members (sounds like antics at Actelion among its major shareholders) but says it must gain control by the 12th or it will walk.
We shouldn't have to wait long in this case -- May 12th is only a few short weeks away. We can always flip a coin for control. See Fierce Biotech.
Posted by Bruce Lehr April 22nd 2011.