Chris Goodney/BloombergValeant's new Chief Executive Officer Joe Papa is seeking to turn around the beleaguered company
Shares of Valeant Pharmaceuticals rose on Friday on a report that the troubled pharma company received a takeover offer in the spring, prior to when its new CEO, Joe Papa, was appointed.
The approach was apparently from Japanese pharma company Takeda and private equity firm TPG.
Word is that that there are no talks currently happening between the companies and Valeant rejected the bid.
If Valeant were to receive such an offer, Mizuho Securities analyst Irina Koffler doesn’t think shareholders would part with the stock, even at a premium.
That’s because board members and large shareholders are so far underwater on their positions that they may be resistant to a potential offer that undervalues Valeant.
“This stubbornness could frustrate risk-tolerant retail investors that may have jumped into the stock more recently and have more to gain,” Koffler told clients.
As a result, she thinks a hostile offer could be required, along with a protracted fight to oust Valeant’s current board – something most activist investors may find unpalatable.
Either way, the analyst doesn’t think Valeant’s assets warrant a premium bid at this point, and reiterated an underperform rating and US$18 price target on the stock.