logo
Share SHARE
FONT-SIZE Plus   Neg

ISTA To Consider Revised Offer From Valeant - Update

Eye-disease drug developer ISTA Pharmaceuticals, Inc. (ISTA) Tuesday said it has received a revised non-binding proposal from Valeant Pharmaceuticals (VRX,VRX.TO) to acquire the company and would consider the updated proposal as part of its ongoing review of strategic options.

On December 16, 2011, ISTA had rejected a $6.50 per share hostile, non-binding bid made by Valeant, stating the offer undervalues the company and it sees a bright future, owing to its robust drug portfolio and a healthy pipeline.

In a meeting last week, Valeant raised its initial proposal to $7.50 per share in cash and set a target price of $8.50 per share in cash, subject to one week of due diligence. Valeant on Monday sent a letter to ISTA, confirming its increased non-binding proposal, which ISTA said included several inaccuracies about ISTA's process and the discussions between the two companies.

ISTA said its process for review of strategic options is advancing as planned in an expeditious manner. As part of the strategic review process revealed on December 16, 2011, ISTA is currently in talks with some parties interested in a strategic transaction.

The company said Valeant has not executed a confidentiality agreement and that if it chooses to execute a confidentiality agreement as other parties have done, ISTA would provide it the same non-public information provided to other parties.

Vicente Anido, Jr., President and Chief Executive Officer of ISTA, said, "Valeant has and continues to be offered the same confidentiality agreement, with no standstill provision, as all the other participants in our process and is subject to the same timeline...We do not think it is in the shareholders' best interest to abort our process to accommodate Valeant's artificially short timetable."

Greenhill & Co. is acting as financial advisor to ISTA. Stradling Yocca Carlson & Rauth and WilmerHale LLP are its legal advisors.

ISTA closed Friday at $7.27, down $0.09 or 1.22 percent, on 238,367 shares.

VRX settled lower by $0.19 at $48.19 on a volume of 2.19 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Consumers in Nigeria are calling for a boycott of Coca-Cola products sold in the African nation after a high court judge ruled that the products could be "poisonous". Justice Adedayo Oyebanji of the Lagos High Court ruled that high levels of benzoic acid and sunset additives in Coca-Cola's soft drinks could pose a health risk to consumers when mixed with ascorbic acid, commonly known as Vitamin C. Charles Murphy, a partner at New York hedge fund Paulson & Co., fell to his death after jumping out of a hotel window in Manhattan on Monday. Murphy was found dead on the fourth-floor terrace of the Sofitel New York Hotel after he jumped from a window on the 24th floor. Internet media company BuzzFeed is preparing to go public in 2018, media site Axios reported Wednesday, citing industry sources. New York-based BuzzFeed was founded in 2006 by Jonah Peretti and John Johnson III as a viral lab, focusing exclusively on tracking viral content.
comments powered by Disqus
Follow RTT