Please ensure Javascript is enabled for purposes of website accessibility

Valeant Ups Bid for Obagi to $24 per Share

By Rich Smith - Apr 3, 2013 at 2:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Obagi's share price is already running ahead of the new offer.

The discount that Valeant Pharmaceuticals (BHC 0.99%) looked likely to claim on its proposed buyout of specialty pharma company Obagi Medical Products (NASDAQ: OMPI) is getting smaller by the day.

In March, Valeant made an initial bid of $19.75 per share for Obagi, a price only 2.9 times the value of Obagi's annual revenues. Yesterday, German rival Merz Pharma trumped that offer with a $22-per-share bid of its own.

Today, Valeant responded in kind, increasing its bid to $24 cash per share. But investors seem to expect this bidding war to continue, and the price to continue to rise. As of this writing, Obagi shares are up 10% in Wednesday trading, and their new share price -- $25.15 -- perhaps indicates we can expect a new bid from Merz in fairly short order.

The Obagi board supports the latest Valeant offer.

link

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Bausch Health Companies Inc. Stock Quote
Bausch Health Companies Inc.
BHC
$9.68 (0.99%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.