Bloomberg News

Valeant Merger Talks With Actavis Said to Stall Over Pricing (2)

April 29, 2013

Valeant’s Merger Talks With Actavis Said to Stall Over Pricing

Actavis Inc., the biggest U.S. generic-drug maker, was created after Watson Pharmaceuticals bought Actavis Group last year and began operating under the target’s brand name. Source: Actavis via Bloomberg

Valeant Pharmaceuticals International Inc. (VRX)’s merger talks with Actavis Inc. (ACT:US) have stalled because of a disagreement on price, according to people familiar with the matter.

The generic-drug makers had sought to announce a deal as soon as today before Actavis balked at the premium offered by Valeant, said one of the people, who asked not to be identified because the discussions aren’t public. While the talks have halted for now, they may become active again, another person said.

Laurie Little, a spokeswoman for Montreal-based Valeant, and Charlie Mayr, a spokesman for Morristown, New Jersey-based Actavis, couldn’t be reached immediately for comment. The Financial Times reported April 27 that the talks had stalled.

Actavis, the biggest U.S. generic-drug maker, was created after Watson Pharmaceuticals bought Actavis Group last year and began operating under the target’s brand name. It had $5.91 billion in 2012 revenue (ACT:US) and a market value of $12.9 billion as of the close of New York trading (ACT:US) on April 26, according to data compiled by Bloomberg.

Actavis rose 4.6 percent to $105.58 at the close in New York, the shares’ highest price since February 1993. Valeant gained 3.8 percent to $75.94.

To contact the reporters on this story: Matthew Monks in New York at mmonks1@bloomberg.net; Jeffrey McCracken in New York at jmccracken3@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net


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Companies Mentioned

  • ACT
    (Actavis plc)
    • $257.09 USD
    • 2.89
    • 1.12%
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