By Liz Hoffman
Valeant Pharmaceuticals International Inc. has recut its agreed
deal to buy Salix Pharmaceuticals International Inc., increasing
the price to $173 a share, or about $11.1 billion, according to
people familiar with the matter.
The amended agreement is meant to fend off a rival
cash-and-stock bid lobbed in last week by Endo International PLC.
That bid was worth about $172.50 at Friday's close, and could take
longer to close and face more uncertainty as it requires a vote of
Endo's shareholders.
As part of the recut deal, Salix increased by $100 million, to
about $450 million, the breakup fee it would owe Valeant if Salix
walked away, the people said. That change makes another topping bid
by Endo more expensive.
Salix also agreed to shorten from Aug. 20 to May 1 the date
until which Valeant must keep its offer on the table, the people
said.
Salix makes drugs to treat stomach disorders, a fast-growing
area of specialty pharmaceuticals.
Write to Liz Hoffman at liz.hoffman@wsj.com
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