Shares in Takeda Pharmaceutical and Valeant Pharmaceuticals rose amid chatter that the Japanese drugmaker and TPG, the private equity firm, had made a takeover offer for its besieged Canadian peer.
Valeant this spring rejected an approach from its Japanese rival and TPG, according to the Wall Street Journal, before the recent instalment of Joseph Papa as chief executive officer.
One person briefed on the talks described the Takeda and TPG approach to the Financial Times as an “opportunistic” attempt to buy the company at a knock-down price.
The person insisted Valeant was not for sale and that Mr Papa was “in it for the long haul”, pointing to a compensation package that becomes increasingly more lucrative throughout his tenure.
TPG and Takeda both declined to comment.
Takeda shares were up as much as 1.2 per cent on Friday in Japan, but are down about 19 per cent so far this year. The broader Topix benchmark was up 0.5 per cent in early trade.
Valeant shares were 6.2 per cent higher in after hours trading on the Nasdaq at $ 28.62, but the share price has collapsed 73.5 per cent in 2016 amid ongoing inquiries from authorities into the company’s accounting practices.
It has proved to be a disastrous investment for Pershing Square, the hedge fund run by Bill Ackman, which was last reported on March 31 to have a 6.33 per cent stake in the company, according to Bloomberg data.
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