Valeant May Have to Up Hostile Bid for Cephalon

Includes: CEPH, VRX
by: Alacra Pulse Check Blog

By Sheena Lee

Deal of the Day: Valeant Pharmaceuticals (NYSE:VRX) offered to buy Cephalon (NASDAQ:CEPH) for $5.7 billion in cash, kicking off a hostile bid for the biopharmaceutical company after weeks of discussions failed to produce a deal. (DealBook)

The deal likely will get done at a higher price than the $73-a-share bid now on the table, Cowen & Co. (NASDAQ:COWN) analyst Eric Schmidt wrote in a research note. He suggested $75 to $80 a share. “We would not expect Valeant to encounter a lot of resistance” from Cephalon shareholders, New York-based Schmidt wrote. Cephalon shares jumped close to 30 percent in trading. (Bloomberg)

Deal Update: DuPont (DD) said that it had extended its $6 billion offer for the Danish food ingredients company Danisco (OTC:DNSCY) for a second time, giving shareholders an additional four weeks to act on the bid. (DealBook)

Deal Update: Leonard Green and CVC have also joined the bid for Big Lots (NYSE:BIG), according to sources familiar with the situation. TPG and Bain have formed another group and Thomas H. Lee Partners may make the bid on its own. (Financial Times)

Deal Update: Carl C. Icahn offered a $220 million loan to Mentor Graphics (NASDAQ:MENT), the latest salvo in his continuing takeover battle with the software maker. (DealBook)

Other Deal Activity:

Puma Energy, a subsidiary of oil trader Trafigura said it agreed to buy Exxon Mobil’s (NYSE:XOM) downstream oil businesses in six Central American countries. (Reuters)

Tullow Oil (OTCPK:TUWOY), the British energy company, said that it was selling stakes in its Ugandan oil exploration project to China National Offshore Oil Corporation and Total of France for $2.9 billion. (DealBook)

BASF SE (OTCQX:BASFY) is in talks to sell its nitrogen-fertilizer unit to companies including Orascom Construction Industries (OTC:ORSDF), said two people with knowledge of the situation. (Arab Finance) (NYSE:CRM) the enterprise cloud computing company, announced it has entered into a definitive agreement to acquire Radian6, the industry-leading social media monitoring platform, for approximately $276 million in cash and $50 million in stock. (PRNewswire)

Taiwan’s China Development Financial Holding said it sent a letter to Polaris Securities seeking closer cooperation with the brokerage, and denied market chatter it is preparing to launch a takeover bid for the company, according to a statement on Taiwan’s stock exchange website. (Wall Street Journal)