Valeant Makes Hostile Bid for ISTA Pharmaceuticals
NEW YORK, December 16, 2011 (AP) - Valeant Pharmaceuticals International Inc. is making a hostile bid to acquire ISTA Pharmaceuticals Inc. for $6.50 per share in cash, or $314 million - the Canadian company's latest attempt to buy the eye-disease drug developer.
The offer, announced Friday, is a 67 percent premium over ISTA's closing stock price of $3.89 on Thursday.
ISTA shares jumped $2.27, or 58 percent, to $6.16 in premarket trading. Valeant shares were unchanged from their closing price of $44.86 on Thursday.
Valeant first tried to make a deal with ISTA in October, but said ISTA refused to start the process. Valeant made an official written proposal to ISTA's management in late November. On Dec. 2, ISTA said it needed more time to review the offer. Valeant reaffirmed its offer on Monday, but ISAT rejected it on Wednesday.
Valeant said it is giving ISTA until the end of January to accept the deal. The company said it will consider paying more if ISTA is willing to start discussions.
Posted: December 2011