China Prepares Mergers for Big State-Owned Enterprises
Plan seeks to make firms more profitable but tightens government’s grip
BEIJING—China’s leadership is preparing to radically consolidate the country’s bloated state-owned sector, telling thousands of enterprises they need to rely less on state life support and get ready to list on public markets.
The economic slowdown has heightened the imperative to eke better returns out of the state firms that tower over China’s economy, from the giants that dominate oil, banking and other strategic sectors, to smaller ones that run hotels and make toothpaste.
On Wednesday, China showed fresh signs of weakness, reporting that industrial production for the year’s first two months grew at its slowest pace since the global financial crisis, weighed down by overcapacity, while housing prices continued their swoon.
But instead of scaling back state firms’ role, as economists urge, the consolidation plan could tighten the state’s grip over economic activity and make already inflated behemoths even bigger.
Communist Party leaders plan to release broad guidelines in the next months for restructuring the country’s more than 100,000 state-owned enterprises, according to government officials and advisers with knowledge of the deliberations.
The leadership is determined to “crack a hard nut,” said Li Jin, deputy head of the China Enterprise Reform and Development Society, a trade group under the top state-firm regulator.
Strategically important industries such as energy, resources and telecommunications are marked for consolidation, the officials and advisers say. The merged entities would then be reorganized as asset-investment firms, with a mandate to make sure they run more like commercial operations than arms of the government.
Upper management will be under orders to maximize returns and prepare many of the companies for eventual listing on stock markets, these people say.
State companies are already under pressure to hand the government 30% of their profits by 2020—from 15% or less now. Some of this is to be earmarked for costs related to a rapidly aging population. The new plan adds a goal of making the biggest state companies profitable enough to go public by 2025, according to the officials.
By many measures, the state sector has grown more dominant in China’s economic life, despite Beijing’s recurring calls for a more vibrant private sector.
The plan could be controversial as it falls short of the steps advocated by some market-reform advocates: For one thing it takes large-scale privatization off the table.
“The idea of having asset managers oversee state assets is a good one, but it shouldn’t be done through combining existing state-owned enterprises that are already so big,” says Zhang Wenkui, a deputy director at the Development Research Center of the State Council, China’s cabinet. “That would only lead to less competition.”
Beijing has sought to improve state companies’ efficiency through consolidation in years past, with little success. For example, the government of Hebei province, which rings Beijing, merged two major steel makers to create Hebei Iron and Steel Group, which went on to scoop up more companies but which is now mired in losses and debt.
The State-owned Assets Supervision and Administration Commission, or Sasac, which oversees the largest state enterprises, declined requests for comment on the reform plan. In a speech to the legislature last week, Premier Li Keqiang vowed to “deepen the reform of state-owned enterprises” and to “speed up efforts” to set up state-asset investment companies. He didn’t elaborate
Over the years, China has moved in fits and starts to restructure its vast state-owned sector. In the 1990s, then-Premier Zhu Rongji closed thousands of factories and managed to make some state firms profitable by setting up asset-management companies that took over their debts. But little has been done to improve the way state companies are run.
Once released, the new plan is expected to be implemented by various level of government, though resistance by local officials is expected.
“Making state enterprises more commercial would mean an end to a lot of government subsidies to their employees, like housing and electricity bills,” said an official in eastern China’s Jiangxi province. “That would make a lot of people upset and angry.”
The prospect of a shake-up has prompted market bets on consolidation. Shares in the two state-controlled train makers, China CNR Corp. and China CSR Corp., have doubled in price since December when they announced a merger plan. The tie-up was approved by regulators this month. Meanwhile, shares in the listed arms of two of China’s oil giants—China National Petroleum Corp., or CNPC, and China Petrochemical Corp., or Sinopec—have also risen on speculation they would be combined.
Asked about the chances of such a tie-up, Sinopec Chairman Fu Chengyu told China’s official Xinhua News Agency on March 3, “I don’t know.”
Beijing still sees a bigger role for the private sector: The plan supports efforts to invite private investment into state firms, though the officials and advisers say that private investors wouldn’t be permitted to hold controlling stakes in most state firms.
Beijing sees a combination of mergers, better supervision and the discipline of public listing as crucial to reducing waste and corruption and holding management accountable, Chinese officials say.
“State-owned enterprises should have the kind of governance and financial accountability that meets the criteria for publicly traded companies,” Guo Shuqing, governor of Shandong province and a former financial regulator, told reporters this weekend.
State firms have thrived on access to loans from state banks and government-set rules that limit competition from private businesses, which complain of being muscled out of the market unfairly. Economists have said the special status has come at a cost to Chinese taxpayers and consumers.
In an analysis for The Wall Street Journal, economist Zhu Chaoping at UOB Kay Hian Holdings Ltd., a Singapore-based brokerage, found that assets at state-owned enterprises, defined as those majority-controlled by the government, jumped 90% to 25.1 trillion yuan ($4 trillion) in 2012 from 2008. Return on equity among state-controlled manufacturers, however, averaged 11.6% in 2013, compared with nearly 25.7% for their private brethren, according to Mr. Zhu’s analysis.
When drawing up the plan, senior officials looked at Singapore’s holding company for state firms, Temasek Holdings, according to officials and advisers. Under the Temasek model, the government would confine itself to the role of a stakeholder, receiving dividends but leaving day-to-day running of the companies to professional managers at the asset-investment firms hired at market rates.
In the end, Beijing’s plan stops short of that. The government will retain its current practice of naming senior management teams for the newly formed companies, the officials and advisers say.
Beijing has quietly started experimenting with forming state investment companies through merging state firms. Last year, at Sasac’s direction, State Development & Investment Corp., a financial and industrial conglomerate, scooped up a securities firm, while Cofco Corp.—one of China’s largest food-processing firms—swallowed another state-owned food company. Cofco absorbed the assets of China Huafu Trade & Development Group “for free,” according to Huafu, which became a subsidiary.
Officials at the regulator, State Development and Cofco declined to comment.
Meanwhile, in the nuclear power sector, China Power Investment Corp. is merging with the State Nuclear Power Technology Corp., according to the securities filings made by China Power’s listed arms last month.
Making big state companies bigger is likely to draw renewed wrath from private Chinese companies and from Western businesses and their governments, which have criticized Beijing for years for essentially subsidizing state firms by giving them preferential access to credit, land and other resources.
Combining state firms would “run counter to” Beijing’s promise to broaden private participation in the economy, said Zhang Ming, an economist at the Chinese Academy of Social Sciences, a government think tank.
Deutsche, Santander fail US stress test
The Federal Reserve has vetoed the US capital plans of Deutsche Bank and Santander in a stinging rebuke for the European banks even as every US lender passed the test for the first time, paving the way for the biggest payouts to shareholders since the financial crisis
After Hours Summary: SCLN +14.3%, OME +11.5%, TAHO +8.1%, INGN -26.2%, BOX -13.5%, SHAK -5.5% following earnings/guidance
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings: SCLN +14.3%, OME +11.5%, TAHO +8.1%, AMOT +6.5%, ZOES +5.2%, PLPM +3.9%, XNET +3.4%, CTP +3.3%, MW +3.2%, PLOW +3%, MYRG +2.5%, CNAT +1.8%, NMRX +1.3%, EYES +0.3%
Companies trading higher in after hours in reaction to news: CTP +3.3% (appointed Vice Chairman Sylvain Dhenin as CEO; co also reported earnings), MS +3.0% (announced a share repurchase of up to $3.1 bln; increased quarterly dividend to $0.15 from $0.10), C +2.8% (announced an increase of quarterly dividend to $0.05 from $0.01 per share and a $7.8 bln share purchase plan during the five quarters starting in the second quarter of 2015), PLCE +2.7% (seeing reports that Hedge funds Barington Capital and Macellum Advisors have taken a stake in the company and are pushing for a sale), LMOS +2.6% (announced the sale of an aggregate of 1.6 mln shares of its common stock on an underwritten basis by an investment fund affiliated with Quadrangle Capital Partners L.P.), STI +1.9% (increased quarterly dividend to $0.24 from $0.20 per share; announced increase in share buyback program, authorizing up to $875 mln of outstanding common stock to be repurchased), RF +1.7% (increased dividend to $0.06 from $0.05 following CCAR; may repurchase up to $875 mln in common stock)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings: INGN -26.2%, BOX -13.5%, SHAK -5.5%, RLYP -5.2%, KKD -5%, RST -2.1%, XOMA -1.9%, TGTX -1.6%, CMTL -1.2%, IPAR -0.7%, CHMI -0.3%
Companies trading lower in after hours in reaction to news: ACAD -27.1% (provided update on planned timing of its NUPLAZIDTM NDA submission - co now plans to submit its NUPLAZID NDA in the second half of 2015 vs. previous plans to submit in the first quarter of 2015; Separately announced retirement of CEO Uli Hacksell), PQ -13.7% (commenced an underwritten public offering of 10 mln shares of its common stock), BTE -4.8% (announced it has entered into an agreement to sell 28.82 mln common shares at $17.35 per share to raise gross proceeds of ~$500 mln on a bought deal basis), TRGP -3.9% (announced a public offering of 3.25 mln shares of common stock), TRIL -2.5% (filed for $57.5 mln offering of common shares), PE -2.3% (filed for ~14.89 mln share common stock offering by selling shareholders), GNCA -2.0% (to offer and sell shares of common stock in an underwritten public offering)
United Technologies May Spin Off Sikorsky Helicopter Unit
Sikorsky had $7.5 billion of sales last year
United Technologies Corp. on Wednesday said it will explore strategic alternatives for its Sikorsky Aircraft business, including a potential spinoff of the helicopter unit.
The review process should conclude before the end of the year, the industrial conglomerate said in a news release.
United Technologies will discuss its decision to review alternatives for Sikorsky, which had $7.5 billion of sales last year, during its annual investor and analyst meeting on Thursday.
Sikorsky, best known for its Black Hawk helicopters, is one of the world’s largest helicopter makers. It manufactures military and commercial helicopters and is the Pentagon’s largest helicopter supplier by value. Sikorsky also has an aftermarket business that sells parts and maintenance contracts.
The decision would be the latest shake-up for United Technologies, whose chief executive, Louis Chênevert, abruptly stepped down in November after board members lost confidence in him.
A number of companies have announced plans to break themselves apart or shed divisions in recent years, amid a push by some investors for greater focus and accountability on the part of executives.
In addition to its helicopter division, United Technologies makes Otis elevators, Pratt & Whitney jet engines and Carrier air-conditioning units. The Hartford, Conn., conglomerate has a market value of $106 billion.
United Technologies CEO Greg Hayes told analysts in December that he was going to re-evaluate the company’s portfolio, but said he had no plans to sell Sikorsky.
“Everybody wants to sell Sikorsky, but the fact is we’re going to take a hard look at the portfolio, and we’re going to do what’s right,” Mr. Hayes said at the time.
Sikorsky, started in 1925 by Igor Sikorsky on New York’s Long Island and later picked up by United Technologies in an acquisition, is the company’s smallest division by revenue. Last year, it made $219 million in profit after taking a big charge for the renegotiation of a maritime helicopter contract with the Canadian government.
The unit has come under pressure amid soft military spending and weakness in demand from oil-field services companies following the steep drop in crude-oil prices. But it has landed several high-profile new contracts, including the new presidential helicopter program with Lockheed Martin Corp.
In December, Mr. Hayes said he expected 5% growth for the business compounded through the end of the decade.
Valeant Comments On Endo Offer To Acquire Salix
2015-03-11 22:10:14.768 GMT
Valeant Comments On Endo Offer To Acquire Salix
PR Newswire
LAVAL, Quebec and RALEIGH, N.C., March 11, 2015
LAVAL, Quebec and RALEIGH, N.C., March 11, 2015 /PRNewswire/ -- Valeant
Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today issued the
below statement in response to Endo International PLC's (NASDAQ: ENDP)
unsolicited offer to acquire Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP):
"We are firmly committed to our all-cash agreed transaction, which delivers
immediate and certain value to Salix shareholders. The tender offer is
scheduled to expire at the end of the day on March 31, 2015, and Valeant
expects to be in the position to close the transaction on April 1, 2015."
On February 22, 2015 Valeant and Salix announced a definitive agreement under
which Valeant will acquire all of the outstanding common stock of Salix for
$158 per share in cash. The transaction is subject to customary closing
conditions and regulatory approval.
About Valeant
Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) is a multinational
specialty pharmaceutical company that develops, manufactures and markets a
broad range of pharmaceutical products primarily in the areas of dermatology,
eye health, neurology and branded generics. More information about Valeant can
be found at www.valeant.com.
Forward-looking Statements
This press release may contain forward-looking statements, including, but not
limited to, statements regarding the proposed acquisition by Valeant of Salix
and the expected timing and benefits of the transaction. Forward-looking
statements may generally be identified by the use of the words "anticipates,"
"expects," "intends," "plans," "should," "could," "would," "may," "will,"
"believes," "estimates," "potential," "target," or "continue" and variations
or similar expressions. These statements are based upon the current
expectations and beliefs of management of Valeant and Salix and are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. These risks
and uncertainties include, but are not limited to, the risk that the
acquisition will not close when expected or at all; the risk that Valeant's
business and/or Salix's business will be adversely impacted during the
pendency of the acquisition; the risk that the operations of the two companies
will not be integrated successfully; and risks and uncertainties discussed in
Valeant's and Salix's most recent annual or quarterly report and detailed from
time to time in Valeant's and Salix's other filings with the Securities and
Exchange Commission (the "SEC") and, with respect to Valeant, the Canadian
Securities Administrators, which factors are incorporated herein by reference.
Readers are cautioned not to place undue reliance on any of these
forward-looking statements. These forward-looking statements speak only as of
the date hereof. Valeant undertakes no obligation to update any of these
forward-looking statements to reflect events or circumstances after the date
of this press release or to reflect actual outcomes.
This press release is neither an offer to purchase nor a solicitation of an
offer to sell shares of Salix. Valeant filed a Tender Offer Statement on
Schedule TO with the SEC on March 4, 2015. Salix filed a
Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the
offer on March 6, 2015. Stockholders of Salix are urged to read the tender
offer materials (including the Offer to Purchase, a related Letter of
Transmittal and certain other offer documents) and the
Solicitation/Recommendation Statement, in each case as amended (to the extent
applicable), because they contain important information which should be read
carefully before any decision is made with respect to the tender offer. The
Offer to Purchase, the related Letter of Transmittal and certain other offer
documents, as well as the Solicitation/Recommendation Statement, have been
made available to all stockholders of Salix at no expense to them. The Tender
Offer Statement and the Solicitation/Recommendation Statement are available to
all stockholders of Salix free of charge at the website maintained by the SEC
at www.sec.gov. In addition, the tender offer statement and other documents
that Valeant files with the SEC are and will be made available to all
stockholders of Salix free of charge at www.valeant.com. The
Solicitation/Recommendation Statement and the other documents filed by Salix
with the SEC are, and will be, made available to all stockholders of Salix
free of charge at www.salix.com.
Contact Information:
Valeant Investors:
Laurie W. Little
949-461-6002
laurie.little@valeant.com
Valeant Media Contacts:
Sard Verbinnen & Co
Renée Soto/ Meghan Gavigan/Jared Levy
212-687-8080
Valeant Pharmaceuticals International, Inc.
Logo - http://photos.prnewswire.com/prnh/20101025/LA87217LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/valeant-comments-on-endo-offer-to-acquire-salix-300049357.html
SOURCE Valeant Pharmaceuticals International, Inc.
Website: http://www.valeant.com
-0- Mar/11/2015 22:10 GMT
2015-03-11 22:10:14.768 GMT
Valeant Comments On Endo Offer To Acquire Salix
PR Newswire
LAVAL, Quebec and RALEIGH, N.C., March 11, 2015
LAVAL, Quebec and RALEIGH, N.C., March 11, 2015 /PRNewswire/ -- Valeant
Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today issued the
below statement in response to Endo International PLC's (NASDAQ: ENDP)
unsolicited offer to acquire Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP):
"We are firmly committed to our all-cash agreed transaction, which delivers
immediate and certain value to Salix shareholders. The tender offer is
scheduled to expire at the end of the day on March 31, 2015, and Valeant
expects to be in the position to close the transaction on April 1, 2015."
On February 22, 2015 Valeant and Salix announced a definitive agreement under
which Valeant will acquire all of the outstanding common stock of Salix for
$158 per share in cash. The transaction is subject to customary closing
conditions and regulatory approval.
About Valeant
Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) is a multinational
specialty pharmaceutical company that develops, manufactures and markets a
broad range of pharmaceutical products primarily in the areas of dermatology,
eye health, neurology and branded generics. More information about Valeant can
be found at www.valeant.com.
Forward-looking Statements
This press release may contain forward-looking statements, including, but not
limited to, statements regarding the proposed acquisition by Valeant of Salix
and the expected timing and benefits of the transaction. Forward-looking
statements may generally be identified by the use of the words "anticipates,"
"expects," "intends," "plans," "should," "could," "would," "may," "will,"
"believes," "estimates," "potential," "target," or "continue" and variations
or similar expressions. These statements are based upon the current
expectations and beliefs of management of Valeant and Salix and are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. These risks
and uncertainties include, but are not limited to, the risk that the
acquisition will not close when expected or at all; the risk that Valeant's
business and/or Salix's business will be adversely impacted during the
pendency of the acquisition; the risk that the operations of the two companies
will not be integrated successfully; and risks and uncertainties discussed in
Valeant's and Salix's most recent annual or quarterly report and detailed from
time to time in Valeant's and Salix's other filings with the Securities and
Exchange Commission (the "SEC") and, with respect to Valeant, the Canadian
Securities Administrators, which factors are incorporated herein by reference.
Readers are cautioned not to place undue reliance on any of these
forward-looking statements. These forward-looking statements speak only as of
the date hereof. Valeant undertakes no obligation to update any of these
forward-looking statements to reflect events or circumstances after the date
of this press release or to reflect actual outcomes.
This press release is neither an offer to purchase nor a solicitation of an
offer to sell shares of Salix. Valeant filed a Tender Offer Statement on
Schedule TO with the SEC on March 4, 2015. Salix filed a
Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the
offer on March 6, 2015. Stockholders of Salix are urged to read the tender
offer materials (including the Offer to Purchase, a related Letter of
Transmittal and certain other offer documents) and the
Solicitation/Recommendation Statement, in each case as amended (to the extent
applicable), because they contain important information which should be read
carefully before any decision is made with respect to the tender offer. The
Offer to Purchase, the related Letter of Transmittal and certain other offer
documents, as well as the Solicitation/Recommendation Statement, have been
made available to all stockholders of Salix at no expense to them. The Tender
Offer Statement and the Solicitation/Recommendation Statement are available to
all stockholders of Salix free of charge at the website maintained by the SEC
at www.sec.gov. In addition, the tender offer statement and other documents
that Valeant files with the SEC are and will be made available to all
stockholders of Salix free of charge at www.valeant.com. The
Solicitation/Recommendation Statement and the other documents filed by Salix
with the SEC are, and will be, made available to all stockholders of Salix
free of charge at www.salix.com.
Contact Information:
Valeant Investors:
Laurie W. Little
949-461-6002
laurie.little@valeant.com
Valeant Media Contacts:
Sard Verbinnen & Co
Renée Soto/ Meghan Gavigan/Jared Levy
212-687-8080
Valeant Pharmaceuticals International, Inc.
Logo - http://photos.prnewswire.com/prnh/20101025/LA87217LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/valeant-comments-on-endo-offer-to-acquire-salix-300049357.html
SOURCE Valeant Pharmaceuticals International, Inc.
Website: http://www.valeant.com
-0- Mar/11/2015 22:10 GMT
Closing Market Summary: S&P 500 Settles Below 100-Day Moving Average
The Dow (-0.2%), Nasdaq (-0.2%), and S&P 500 (-0.2%) registered modest losses on Wednesday while the Russell 2000 (+0.6%) outperformed. The small-cap index climbed steadily throughout the afternoon while the S&P 500 spent the day in an 11-point range near its flat line before settling just below its 100-day moving average (2,042).
Yesterday's sharp slide was paced by the two largest sectors by weight, but technology (-0.7%) and financials (+0.6%) spent today on opposite sides of their unchanged levels, which contributed to the sideways action.
The financial sector settled in the lead ahead of this evening's release of the complete results of the stress test administered by the Federal Reserve. Citigroup (C 52.33, +1.10) was the top performer among the majors, climbing 2.2%.
Meanwhile, the technology sector struggled throughout the session, sliding to lows during the final hour of action. Shares of Apple (AAPL 122.24, -2.27) fell 1.8%, keeping the sector under pressure while chipmakers displayed relative strength. Intel (INTC 32.34, +0.64) and SanDisk (SNDK 82.73, +2.56) posted respective gains of 2.0% and 3.2% while the PHLX Semiconductor Index rose 0.3%. Intel rallied after VentureBeat reported that the company's processors will be used in Apple iPhones in 2016 while SanDisk was added to Goldman's Conviction Buy List.
Elsewhere among cyclical sectors, the discretionary space (-0.5%) lagged while the energy sector (+0.2%) ended among the leaders even though crude oil settled lower by 0.4% at $48.21/bbl after testing the $47.40/bbl level intraday. The dollar-denominated energy component had to contend with another uptick in the greenback that pushed the Dollar Index (99.76, +1.15) higher by 1.2%. The dollar enjoyed another day of broad strength, pressuring the euro to 1.0540.
Over on the countercyclical side, consumer staples (-0.8%) and utilities (-0.7%) underperformed throughout the day while health care ended flat after showing intraday strength. The sector saw little reaction to news indicating Endo International (ENDP 87.76, -1.24) offered to buy Salix Pharmaceuticals (SLXP 168.60, +10.95) for $175/share.
Treasuries rallied following today's solid 10-yr auction, sending the benchmark 10-yr yield lower by three basis points to 2.11%.
Today's participation was in-line with recent averages as roughly 760 million shares changed hands at the NYSE floor.
Economic data released today was limited to the weekly MBA Mortgage Index, which fell 1.3% to follow last week's 0.1% uptick.
Tomorrow, weekly Initial Claims (consensus 306K), February Retail Sales (consensus 0.4%), and February Import/Export Prices will be released at 8:30 ET while the Business Inventories report for January (consensus 0.1%) will cross the wires at 10:00 ET. The day's data will be topped off with the 14:00 ET release of the Treasury Budget for February (consensus -$192 billion), which was pushed back from today.
- Nasdaq Composite +2.4% YTD
- Russell 2000 +0.9% YTD
- S&P 500 -0.9% YTD
- Dow Jones Industrial Average -1.1% YTD
*VALEANT SPOKESMAN: 'FIRMLY COMMITTED TO ALL CASH AGREED DEAL'
2015-03-11 19:27:42.103 GMT
--JOHN CRIMMINGS
-0- Mar/11/2015 19:27 GMT
2015-03-11 19:27:42.103 GMT
--JOHN CRIMMINGS
-0- Mar/11/2015 19:27 GMT
BN 03/11 18:31 *ENDO HAS 'HIGHLY CONFIDENT' LETTERS FROM BANKS ON FINANCING
BN 03/11 18:29 *ENDO CONFIDENT IT WOULD OBTAIN REGULATORY & HOLDER APPROVALS
BN 03/11 18:29 *ENDO CONFIRMS OFFER TO BUY SALIX FOR $175.00/SHR IN CASH, STOCK
BFW 03/11 18:29 *ENDO PROPOSAL TO BUY SALIX FOR $175.00/SHR IN CASH & STOCK
BN 03/11 18:29 *ENDO PROPOSED DEAL WOULD NOT BE SUBJECT TO FINANCING CONDITION
BFW 03/11 18:29 *ENDO CONFIRMS PROPOSAL TO BUY SALIX FOR $175.00-SHR IN CASH,
BN 03/11 18:29 *ENDO PROPOSAL TO BUY SALIX FOR $175.00/SHR IN CASH & STOCK
BN 03/11 18:28 *ENDO CONFIRMS PROPOSAL TO BUY SALIX FOR $175.00/SHR IN CASH & S
BN 03/11 18:28 *ENDO CONFIRMS PROPOSAL TO BUY SALIX FOR $175.00/SHR IN CASH &
BN 03/11 18:28 *ENDO CONFIRMS PROPOSAL TO BUY SALIX FOR $175.00-SHR IN CASH,
BN 03/11 18:29 *ENDO CONFIDENT IT WOULD OBTAIN REGULATORY & HOLDER APPROVALS
BN 03/11 18:29 *ENDO CONFIRMS OFFER TO BUY SALIX FOR $175.00/SHR IN CASH, STOCK
BFW 03/11 18:29 *ENDO PROPOSAL TO BUY SALIX FOR $175.00/SHR IN CASH & STOCK
BN 03/11 18:29 *ENDO PROPOSED DEAL WOULD NOT BE SUBJECT TO FINANCING CONDITION
BFW 03/11 18:29 *ENDO CONFIRMS PROPOSAL TO BUY SALIX FOR $175.00-SHR IN CASH,
BN 03/11 18:29 *ENDO PROPOSAL TO BUY SALIX FOR $175.00/SHR IN CASH & STOCK
BN 03/11 18:28 *ENDO CONFIRMS PROPOSAL TO BUY SALIX FOR $175.00/SHR IN CASH & S
BN 03/11 18:28 *ENDO CONFIRMS PROPOSAL TO BUY SALIX FOR $175.00/SHR IN CASH &
BN 03/11 18:28 *ENDO CONFIRMS PROPOSAL TO BUY SALIX FOR $175.00-SHR IN CASH,
Endo Confirms Proposal To Acquire Salix For $175.00 Per Share In Cash And Stock
2015-03-11 18:28:51.483 GMT
DUBLIN, March 11, 2015 /CNW/ -- Endo International plc (NASDAQ: ENDP) (TSX:
ENL) today confirmed that it has submitted a proposal to the Board of
Directors of Salix to acquire all of the outstanding shares of common stock of
Salix Pharmaceuticals, Ltd. in a negotiated cash and stock transaction. Based
on the closing stock price of Endo on March 10, 2015, the transaction is
valued at $175.00 per Salix share.
Endo believes that its cash and stock proposal would provide Salix
shareholders with a substantial premium and immediate cash value, as well as
the opportunity to participate in the significant upside potential of a global
leader in specialty pharmaceuticals with a highly diversified platform for
future growth, through a material equity component. Endo believes that its
proposal constitutes a "Superior Proposal" under the terms of Salix's Merger
Agreement with Valeant Pharmaceuticals International, Inc.
If a negotiated transaction were to be agreed to with Salix, Endo anticipates
that the transaction could close in the second quarter and is confident that
it would obtain any regulatory and shareholder approvals. The proposed
transaction would not be subject to any financing condition.
Additional information regarding Endo's proposal, including the full terms and
conditions, are included in a letter that Endo provided to the Salix Board of
Directors today, which is filed on Form 8-K with the Securities and Exchange
Commission (see attached PDF). There can be no assurance that any transaction
will result from this proposal.
BofA Merrill Lynch and Credit Suisse Securities (USA) LLC are serving as
financial advisors to Endo and Skadden, Arps, Slate, Meagher & Flom LLP is
serving as its legal advisor.
About Endo International plc Endo International plc is a global specialty
healthcare company focused on improving patients' lives while creating
shareholder value. Endo develops, manufactures, markets, and distributes
quality branded pharmaceutical, generic pharmaceutical, over the counter
medications and medical device products through its operating companies. Endo
has global headquarters in Dublin, Ireland, and U.S. headquarters in Malvern,
PA. Learn more at www.endo.com.
Cautionary Note Regarding Forward-Looking Statements This press release
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and Canadian securities legislation.
Statements including words such as "believes," "expects," "anticipates,"
"intends," "estimates," "plan," "will," "may," "look forward," "intend,"
"guidance," "future" or similar expressions are forward-looking statements.
Because these statements reflect Endo's current views, expectations and
beliefs concerning future events, these forward-looking statements involve
risks and uncertainties. Although Endo believes that these forward- looking
statements and information are based upon reasonable assumptions and
expectations, readers should not place undue reliance on them, or any other
forward- looking statements or information in this news release. Investors
should note that many factors, as more fully described in the documents filed
by Endo with securities regulators in the United States and Canada including
under the caption "Risk Factors" in Endo's Form 10-K, Form 10-Q and Form 8-K
filings with the Securities and Exchange Commission and with securities
regulators in Canada on System for Electronic Document Analysis and Retrieval
("SEDAR") and as otherwise enumerated herein or therein, could affect Endo's
future financial results and could cause Endo's actual results to differ
materially from those expressed in forward-looking statements contained in
Endo's Annual Report on Form 10-K. The forward-looking statements in this
press release are qualified by these risk factors. These are factors that,
individually or in the aggregate, could cause Endo's actual results to differ
materially from expected and historical results. Endo assumes no obligation to
publicly update any forward-looking statements, whether as a result of new
information, future developments or otherwise, except as may be required under
applicable securities law.
Additional Information This document is provided for informational purposes
only and is neither an offer to purchase nor a solicitation of an offer to
sell shares of Endo or Salix. Subject to future developments and an agreement
between Endo and Salix, Endo may file a registration statement and/or tender
offer documents with the U.S. Securities and Exchange Commission (the "SEC")
in connection with the proposed combination. Endo and Salix shareholders
should read those filings, and any other filings made by Endo with the SEC in
connection with the proposed combination, as they will contain important
information. Those documents, if and when filed, as well as Endo's other
public filings with the SEC, may be obtained without charge at the SEC's
website at www.sec.gov and at Endo's website at endo.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/endo-confirms-proposal-to-acquire-salix-for-17500-per-share-in-cash-and-stock-300049134.html
SOURCE Endo International plc
Investors/Media: Keri Mattox, (484) 216-7912; Investors: Jonathan Neely, (484)
216-6645; Media: Heather Zoumas-Lubeski, (484) 216-6829; Media: Andy Brimmer /
Kelly Sullivan / Aaron Palash, Joele Frank, Wilkinson Brimmer Katcher, (212)
355-4449
CO: Valeant Pharmaceuticals International, Inc.
ST: Ireland
NI: HEA MTC MNA
-0- Mar/11/2015 18:28 GMT
2015-03-11 18:28:51.483 GMT
DUBLIN, March 11, 2015 /CNW/ -- Endo International plc (NASDAQ: ENDP) (TSX:
ENL) today confirmed that it has submitted a proposal to the Board of
Directors of Salix to acquire all of the outstanding shares of common stock of
Salix Pharmaceuticals, Ltd. in a negotiated cash and stock transaction. Based
on the closing stock price of Endo on March 10, 2015, the transaction is
valued at $175.00 per Salix share.
Endo believes that its cash and stock proposal would provide Salix
shareholders with a substantial premium and immediate cash value, as well as
the opportunity to participate in the significant upside potential of a global
leader in specialty pharmaceuticals with a highly diversified platform for
future growth, through a material equity component. Endo believes that its
proposal constitutes a "Superior Proposal" under the terms of Salix's Merger
Agreement with Valeant Pharmaceuticals International, Inc.
If a negotiated transaction were to be agreed to with Salix, Endo anticipates
that the transaction could close in the second quarter and is confident that
it would obtain any regulatory and shareholder approvals. The proposed
transaction would not be subject to any financing condition.
Additional information regarding Endo's proposal, including the full terms and
conditions, are included in a letter that Endo provided to the Salix Board of
Directors today, which is filed on Form 8-K with the Securities and Exchange
Commission (see attached PDF). There can be no assurance that any transaction
will result from this proposal.
BofA Merrill Lynch and Credit Suisse Securities (USA) LLC are serving as
financial advisors to Endo and Skadden, Arps, Slate, Meagher & Flom LLP is
serving as its legal advisor.
About Endo International plc Endo International plc is a global specialty
healthcare company focused on improving patients' lives while creating
shareholder value. Endo develops, manufactures, markets, and distributes
quality branded pharmaceutical, generic pharmaceutical, over the counter
medications and medical device products through its operating companies. Endo
has global headquarters in Dublin, Ireland, and U.S. headquarters in Malvern,
PA. Learn more at www.endo.com.
Cautionary Note Regarding Forward-Looking Statements This press release
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and Canadian securities legislation.
Statements including words such as "believes," "expects," "anticipates,"
"intends," "estimates," "plan," "will," "may," "look forward," "intend,"
"guidance," "future" or similar expressions are forward-looking statements.
Because these statements reflect Endo's current views, expectations and
beliefs concerning future events, these forward-looking statements involve
risks and uncertainties. Although Endo believes that these forward- looking
statements and information are based upon reasonable assumptions and
expectations, readers should not place undue reliance on them, or any other
forward- looking statements or information in this news release. Investors
should note that many factors, as more fully described in the documents filed
by Endo with securities regulators in the United States and Canada including
under the caption "Risk Factors" in Endo's Form 10-K, Form 10-Q and Form 8-K
filings with the Securities and Exchange Commission and with securities
regulators in Canada on System for Electronic Document Analysis and Retrieval
("SEDAR") and as otherwise enumerated herein or therein, could affect Endo's
future financial results and could cause Endo's actual results to differ
materially from those expressed in forward-looking statements contained in
Endo's Annual Report on Form 10-K. The forward-looking statements in this
press release are qualified by these risk factors. These are factors that,
individually or in the aggregate, could cause Endo's actual results to differ
materially from expected and historical results. Endo assumes no obligation to
publicly update any forward-looking statements, whether as a result of new
information, future developments or otherwise, except as may be required under
applicable securities law.
Additional Information This document is provided for informational purposes
only and is neither an offer to purchase nor a solicitation of an offer to
sell shares of Endo or Salix. Subject to future developments and an agreement
between Endo and Salix, Endo may file a registration statement and/or tender
offer documents with the U.S. Securities and Exchange Commission (the "SEC")
in connection with the proposed combination. Endo and Salix shareholders
should read those filings, and any other filings made by Endo with the SEC in
connection with the proposed combination, as they will contain important
information. Those documents, if and when filed, as well as Endo's other
public filings with the SEC, may be obtained without charge at the SEC's
website at www.sec.gov and at Endo's website at endo.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/endo-confirms-proposal-to-acquire-salix-for-17500-per-share-in-cash-and-stock-300049134.html
SOURCE Endo International plc
Investors/Media: Keri Mattox, (484) 216-7912; Investors: Jonathan Neely, (484)
216-6645; Media: Heather Zoumas-Lubeski, (484) 216-6829; Media: Andy Brimmer /
Kelly Sullivan / Aaron Palash, Joele Frank, Wilkinson Brimmer Katcher, (212)
355-4449
CO: Valeant Pharmaceuticals International, Inc.
ST: Ireland
NI: HEA MTC MNA
-0- Mar/11/2015 18:28 GMT
*DJ Endo Bids More Than $165 A Share For Salix, Valuing Drug Maker At Roughly $10.6B -- Sources