(Reuters) - Valeant Pharmaceuticals International Inc VRX.TO VRX.N has arranged financing for a potential bid for bowel-drug maker Salix Pharmaceuticals Ltd SLXP.O, Bloomberg reported, citing people familiar with the matter.
The acquisitive Canadian drugmaker will likely bid more than $150 per share for the company, Bloomberg said, quoting one of those people. (bloom.bg/16YHzmJ)
A bid of $150 per share would value Salix at about $9.6 billion. Salix’s stock was up 4.6 percent at $149.82 in afternoon trading on the Nasdaq on Thursday.
Up to Wednesday's close, the company's stock had risen 7 pct since Feb. 3 when Bloomberg first reported that Valeant was weighing a bid for the company. (bloom.bg/1Da0N5B)
Salix, based in Raleigh, North Carolina, was not immediately available for comment. A Valeant spokeswoman said the company does not respond to market rumors or speculation.
Valeant, which lost a takeover contest for Allergan Inc last year, said earlier this week that it would buy bankrupt cancer vaccine maker Dendreon corp DNDNQ.PK for about $400 million.
Valeant’s U.S.-listed shares were up about 1.9 percent at $167.45 on the New York Stock Exchange. The company’s Canadian shares were up about 0.6 percent at C$209.
Reporting by Natalie Grover; Editing by Ted Kerr