Valeant Pharmaceuticals International, Inc. (NYSE: VRX) has made an unsolicited all-cash offer of $6.50/share for ISTA Pharmaceuticals, Inc. (NASDAQ: ISTA), a maker of eye-care drugs. The offer values ISTA at around $327 million, including ISTA’s debt, and is a premium of 68% of last night’s closing price.
Valeant’s announcement contains this brief history of how the offer developed:
Preferring a consensual process, Valeant approached ISTA on October 5 , 2011. After ISTA refused to enter into a customary confidentiality agreement with Valeant, Valeant made a formal written proposal to ISTA’s management on November 23 , 2011. ISTA responded to this letter on December 2, 2011 , stating that it needed more time to review Valeant’s proposal. Valeant reaffirmed its proposal to ISTA on December 12, 2011 in writing, and ISTA rejected this proposal on December 14 , 2011. Valeant is disappointed by ISTA’s rejection of its proposal and ISTA’s unwillingness to engage in discussions.
Valeant also said that it would consider improving its offer if it is allowed to conduct due diligence and if ISTA proves to be worth more than the existing offer. Valeant’s offer to ISTA shareholders is valid until January 12, 2012.
ISTA has issued no comment on the offer yet.
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