UPDATE 2-Valeant rejected joint takeover bid from Takeda, TPG in spring - source
(Changes sourcing, adds analyst comment)
By Michael Flaherty
May 26 (Reuters) - Valeant Pharmaceuticals International Inc received a joint takeover offer from Japan's Takeda Pharmaceutical Co Ltd and TPG Capital Management LP this spring that the Canadian drugmaker rejected, according to a source familiar with the matter.
The offer was made a few weeks before Joseph Papa took over as Valeant's new chief executive in April last week, the source told Reuters.
The board wants to give Papa time to focus on running the company before thinking about a sale offer, the source said.
Takeda and private equity firm TPG were ready to offer a substantial premium to Valeant, whose stock had fallen about 65 percent this year up to the close of trade on April 22 as the drugmaker was not just seeking a new head but was also hit by an accounting scandal, the source added.
However, analysts from Mizuho Securities USA said that large shareholders and board members are so far 'underwater' on their positions and would not want to part with the stock even at a premium to current levels.
"It would require a hostile offer and protracted battle to dislodge the current board, which most activists may find unattractive," Irina Koffler, an analyst from Mizuho, said in a note late Thursday.
The brokerage, which reiterated its 'underperform' rating on Valeant, also said the company's assets do not warrant a premium bid at this time. Continued...