Amid Speculation, No Big M&A Deal Expected for Valeant (VRX) Anytime Soon

Bloomberg was out with a bit of sobering commentary on Valeant Pharma (NYSE: VRX) following news last Friday that Takeda and TPG were said to have approached the one-time pharma giant.

The author notes that the Taked/TPG approach was most-likely made to see how cheap Valeant is and other bids aren't expected to happen. Any other interest might be for certain assets of Valeant, or to buy the company at a significant discount, or a combination o the two. Let's not forget Valeant's $31 billion debt load, a significant amount by any measure. In general, investors should forget the hype because no "white knight" is expected to show up anytime soon.

Valeant shares are down 90 percent from around this time last year and its market cap of around $10 billion is less than the $13.4 billion paid for Salix last year. Management might be focused not only on new CEO Papa turning the company around, but also on retaining key assets that it might be unwilling to sell at current market values.

Shares of Valeant are trading just about flat Tuesday.

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