BUZZ-Valeant draws options bulls on news of rejected takeover bid

Fri May 27, 2016 11:54am EDT
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** Trading activity in Valeant Pharmaceuticals International Inc's options busy and sentiment leans bullish as the troubled Canadian drugmaker's U.S.-listed shares jump 9 percent

** Valeant received a joint takeover offer from Japan's Takeda Pharmaceutical Co Ltd and TPG Capital Management LP a month or two ago, but it rejected the offer, Reuters reports on Thursday, citing a source familiar with matter

** On Friday, calls outnumbered puts 1.7x; about 55,000 calls traded, 2x the normal pace, according to Trade Alert data

** VRX 5/27 weekly calls at strike prices 30 & 29 the most heavily traded VRX contracts

** Valeant shares are down about 70 pct this year; shares last up 7 pct to $28.88