Valeant in final stages of making $10 billion offer for Salix; reports

Acquisitive Canadian drugmaker Valeant Pharmaceutical International (TSX: VRX) could announce an around $10 billion takeover of Salix Pharmaceuticals (Nasdaq: SLXP) any time now, according to people close to the deal quoted by news sources such as Bloomberg, The Wall Street Journal and CNBC.

Valeant, pipped to the post last year by Actavis in its attempt to buy Botox maker Allergan, is proposing to make an offer of $158 per share in cash, the sources said. Shares of gastrointestinal drug specialist Salix s rose $7.11, or 4.75 in extended trading on Friday, to $157.85 on Friday, almost completely eliminating any premium in the purchase price, noted Bloomberg.

Allergan itself was close to a deal for Salix last fall, as a way to avoid being taken over by Valeant but those talks collapsed after due diligence on Salix revealed issues with its inventory, according to reports. Ireland-headquartered Shire has also been in the frame to acquire Salix, but finally made a move on NPS Pharmaceuticals, in a $5.2 billion deal that completed on Friday.