March 27 (Bloomberg) -- Ista Pharmaceuticals Inc., the maker of eye medications, rose 7.9 percent after agreeing to be bought by Bausch & Lomb Inc. for $500 million.
Ista climbed to $9.04 at the close of trading in New York. Bausch will pay $9.10 a share in cash for the Irvine, California-based company, 8.6 percent more than the closing price yesterday.
Ista, which sells Istalol for intraocular pressure and Bromday for issues associated with cataract extraction, earlier this year rebuffed a $327 million hostile bid by Valeant Pharmaceuticals International Inc. Bausch’s offer is 134 percent more than Ista’s share price on Dec. 15, the day before Valeant’s bid became public.
The deal is expected to close in the second quarter, according to a statement yesterday from Ista and Rochester, New York-based Bausch, which is owned by Warburg Pincus LLC. Bausch said the deal is financed with cash and a $350 million loan.
Bausch was advised by Goldman Sachs Group Inc. and Cleary Gottlieb Steen & Hamilton LLP. Ista was advised by Greenhill & Co., Stradling Yocca Carlson & Rauth and WilmerHale LLP.
Valeant, Canada’s largest drugmaker, dropped its offer of $7.50 a share on Jan. 30, citing lack of progress making a deal. Ista had called Valeant’s share “grossly inadequate.”
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