Par Pharmaceutical (PRX) Hugs Buyout Price as it Could See Higher Bids
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Get Alerts PRX Hot Sheet
Price: $49.98 --0%
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 19
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 19
Trade PRX Now!
Shares of Par Pharmaceutical Companies Inc. (NYSE: PRX) are trading right at its takeover bid with no merger/arbitrage spread as speculators see other bidders stepping up the plate.
This morning, private equity firm TPG agreed to acquire the company for $50 per share in cash.
Analysts at UBS said the deal at 7x-8x EBITDA appears very reasonable and notes similar deals have gotten done at more than 10x. The firm wouldn't be surprised to see a strategic bidder step in at the 8x-9x EBITDA range. Illustrating their confidence in a new bid, UBS raised their price target on Par to $58.
In addition to a higher bid from a strategic buyer, analysts at Barclays see additional bids from financial buyers.
Shares of PRX last traded at $49.99, up 36.66 percent.
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This morning, private equity firm TPG agreed to acquire the company for $50 per share in cash.
Analysts at UBS said the deal at 7x-8x EBITDA appears very reasonable and notes similar deals have gotten done at more than 10x. The firm wouldn't be surprised to see a strategic bidder step in at the 8x-9x EBITDA range. Illustrating their confidence in a new bid, UBS raised their price target on Par to $58.
In addition to a higher bid from a strategic buyer, analysts at Barclays see additional bids from financial buyers.
Shares of PRX last traded at $49.99, up 36.66 percent.
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