Par Pharmaceutical (PRX) Hugs Buyout Price as it Could See Higher Bids

July 16, 2012 11:55 AM EDT
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: 22 | Down: 32 | New: 34
Trade PRX Now!
Join SI Premium – FREE
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.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Mergers and Acquisitions, Rumors, Trader Talk

Related Entities

UBS, Barclays

Add Your Comment