Valeant Merger Talks With Actavis Said to Stall on PriceMatthew Monks and Jeffrey McCracken
Valeant Pharmaceuticals International Inc.’s merger talks with Actavis Inc. have stalled because of a disagreement on price, according to people familiar with the matter.
The generic-drug makers had sought to announce a deal as soon as today before Actavis balked at the premium offered by Valeant, said one of the people, who asked not to be identified because the discussions aren’t public. While the talks have halted for now, they may become active again, another person said.
Laurie Little, a spokeswoman for Montreal-based Valeant, and Charlie Mayr, a spokesman for Morristown, New Jersey-based Actavis, couldn’t be reached immediately for comment. The Financial Times reported April 27 that the talks had stalled.
Actavis, the biggest U.S. generic-drug maker, was created after Watson Pharmaceuticals bought Actavis Group last year and began operating under the target’s brand name. It had $5.91 billion in 2012 revenue and a market value of $12.9 billion as of the close of New York trading on April 26, according to data compiled by Bloomberg.
Actavis rose 4.6 percent to $105.58 at the close in New York, the shares’ highest price since February 1993. Valeant gained 3.8 percent to $75.94.