Valeant abandons effort to acquire ISTA
MISSISSAUGA, Ontario—The morning of Jan. 30 saw Valeant Pharmaceuticals International Inc. announce that it has withdrawn its offer to acquire ISTA Pharmaceuticals Inc. for $7.50 per share in cash—a transaction that would have carried a total equity value of approximately $360 million.
Valeant had previously announced that the offer would remain open until Jan. 31, 2012, but withdrew the offer a day early "due to lack of progress."
"As we stated last December, we were not interested in participating in a lengthy evaluation process and we are disappointed that the ISTA team was not willing to fully explore our proposal by Jan. 31," stated J. Michael Pearson, chairman and CEO of Valent. "We continue to be disciplined on our M&A strategy and we are actively working on other opportunities that we believe can create value for our shareholders. We wish the ISTA team well in their future endeavors."
Irvine, Calif.-based ISTA notes in its own official statement that it is talking multiple parties "that have expressed an interest in pursuing a strategic transaction," and adding that it "remains committed to maximizing shareholder value."
"We repeatedly offered Valeant the opportunity to participate in our strategic review process on a level playing field with others, but it was clear Valeant was only interested in an approach that would have effectively excluded others," Vincente Anido Jr., ISTA's CEO, said in the statement. "We informed Valeant that there were simply too many other companies that had indicated strong interest in ISTA for us to take that approach."
Valeant had initially made a $6.50-per-share offer in December, which would have valued ISTA at roughly $314 million, then raised its offer by a dollar per share on Jan. 17.