IRVINE, Calif. (
) --Shares of
were down Monday morning following
decision to yank its all-cash takeout offer.
Citing a lack of progress in negotiations, Valeant withdrew its $7.50-per-share cash offer for Ista, a maker of medicines to treat various eye conditions.
Shares of Ista were down just 5% to $7.60 in early Monday trading -- an indication that someone is buying the stock on the dip.
Valeant first went public with its unsolicited cash offer for Ista in December, valuing the company at $6.50 per share or $314 million. Ista balked, saying Valeant's price was too low. Valent then upped its bid to $7.50 per share or $360 million but said it would walk away unless progress on the acquisition was made by Jan. 31.
"As we stated last December, we were not interested in participating in a lengthy evaluation process and we are disappointed that the Ista team was not willing to fully explore our proposal by January 31," said Valeant CEO J. Michael Pearson, in a statement. "We continue to be disciplined on our M&A strategy and we are actively working on other opportunities that we believe can create value for our shareholders."
Valeant shares closed Friday at $49.17 and were unchanged in early Monday trading.
--Written by Adam Feuerstein in Boston.
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Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback;
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