Deals
Valeant Bid for Cephalon Still Lowest With 15% Boost: Real M&A
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Valeant Pharmaceuticals International Inc.’s hostile bid for Cephalon Inc. is so low that Valeant could raise the offer by 15 percent and still pay less than any drug takeover in history.
The $73 a share proposal, which lifted Cephalon’s stock 28 percent to $75.44 yesterday, values the Frazer, Pennsylvania-based maker of sleep and cancer drugs at 5.3 times earnings before interest, taxes, depreciation and amortization, the lowest for any acquisition over $1 billion in the drug industry, according to data compiled by Bloomberg. The deal would still be the cheapest even if Valeant raised it to $84, the data show.