Valeant shares rise on Takeda bid report

File photo of the logo of Takeda Pharmaceutical Co at an office building in Glattbrugg...The logo of Japanese Takeda Pharmaceutical Co is seen at an office building in Glattbrugg near Zurich, in this March 7, 2012 file photo. Shares in Takeda Pharmaceutical Co Ltd were down nearly 6 percent on the morning of April 8, 2014, after Bloomberg news reported that a U.S. jury ordered it to pay $  6 billion in punitive damages in a case claiming it hid cancer risks of its Actos diabetes drug. Takeda representatives could not immediately be reached for comment. Takeda's shares were down 5.7 percent at midday at 4,545 yen, after falling as far as 4,483, a six-month low. REUTERS/Arnd Wiegmann/Files (SWITZERLAND - Tags: BUSINESS LOGO HEALTH)©Reuters

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.


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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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