No offer less than $60 CAD will get ApprovalIt's true that valuation multiples for Pharmas have become compressed in recent months in consonance with Valeant and the massive short and distort campaign which was unleashed by various hedge funds in the US.
Their chosen targets were mainly dual listed Pharmas with a listing in Canada including Concordia.
So, the current share price is anomalous.
Once the hedgies move on....which they are now doing..valuations will return to their norms.
Blackstone is well aware of this.
So are Concordia shareholders.
Neither are stupid .
Reality is that Pharmas with a significant growth profile traded at 4-5 times sales and 9-10 times Ebitda.
Which is why any offer below $60 won't have a chance of getting majority approval .
And don't rule out a competing offer..