Obagi Medical Products, Valeant Pharmaceuticals, Merz deal

Valeant increased its offer to acquire Obagi to $24 per share in cash from $19.75 per share on April 3. The news came a day after Merz made public a competing offer to acquire the skin disorder company for $22 per share in cash. Obagi's board unanimously approved the amended merger with Valeant at the bumped-up price, which values Obagi at about $418.4 million based on 17.4 million Obagi shares outstanding as of March 6. Valeant's new price is a 22% premium to Valeant's original $19.75 price, announced on March 20, and a 9% premium to Merz's price of $22 per share, which values Obagi at about $383.6 million. The deal is still slated to close this half (see BioCentury, March 25). ...