Endo to acquire Auxilium in $2.6 billion deal
Monday, October 13, 2014
Ireland based Endo International is set to buy Auxilium Pharmaceuticals in a cash-and-stock deal valued at $2.6 billion. Auxilium has welcomed the new offer after rejecting one for a lower price a few days back.
Endo shall pay $33.25 in cash and stock for each Auxilium share. That would represent a 55 percent interest to Auxilium''''s closing price on Sept. 16. It’s the same day when Endo announced its acquisition program.
The lower bid by Endo International PLC initially was rejected by Auxilium and its share holders and it was called an unsolicited deal. Earlier, the deal was supposed to be made at $28.10 per share in a bid valued at $2.2 billion, which now is a revised offer and includes the assumption of debt.
The boards of both Endo and Auxilium have approved the higher bid without any further negotiations. If perceived as a possible prospect by the Auxilium share holders then the deal can be closed early next year.
Auxilium shareholders will be given to choose from all-cash, all-stock or cash-and-stock payment according to the new bid.
Due to reduced sales of its testosterone gel Testim Auxilium is in a struggling phase and would have cut about 190 jobs last year only to save $75 million/year.
Shares of Auxilium escalated nearly 11 percent, or $3.18, to $32.94 in pre-market trading recently. This put the stock up 59 percent so far in the present year. Also, U.S.-traded shares of Endo fell $1.34, or 1.9 percent, to $69.66 in pre-market trading.
