Cephalon Shares Jump on Hostile Takeover Bid
Cephalon, Inc. (NASDAQ:CEPH) shares soared this morning up 28% rising over $16.50 to $75.30. There have been nearly 26 million shares of Cephalon, Inc. stock traded this morning. This is an enormous increase from the average daily volume of 1.5 million shares.
The reason for such a large increase is Valeant Pharmaceuticals International Inc. (NYSE:VRX). Valeant Pharmaceuticals just made public its attempt to purchase Cephalon, Inc. after multiple private attempts were rejected. Valeant Pharmaceuticals made a cash offer of $5.7 billion or $73 per share. If successful the acquisition will be the largest hostile takeover in the industry since the Sanofi-Aventis SA (NYSE:SNY) bid for Genzyme Corp (NASDAQ:GENZ).
Valeant Pharmaceuticals International, Inc. also saw shares jump this morning by nearly 10% up $4.25 to $48.65 per share. Nearly 12 million shares have been traded so far this morning a five time increase over the average daily volume VRX shares.
About Cephalon, Inc
Cephalon, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of products for central nervous system, inflammatory disease, pain, and oncology therapeutic areas. Its products for central nervous system disorders include PROVIGIL for the treatment of excessive sleepiness associated with narcolepsy, obstructive sleep apnea/hypopnea syndrome, and shift work sleep disorder.