Endo International launched a takeover bid on Wednesday for Salix Pharmaceuticals. Endo’s offer of $175 a share beats Valeant’s existing offer of $158 a share.
Endo's offer values Salix at about $11.2 billion, trumping Valeant’s agreed offer of $10 billion. Endo, however, is offering mostly stock, in contrast to Valeant’s cash offer. A cash offer does not require either company’s shareholders to approve the deal.
Endo would have to pay a $356 million break-up fee to Valeant if it succeeds, along with close to $60 million in associated fees.
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