Stuttering Canadian drugs maker Valeant Pharmaceuticals (VRX) reportedly received a joint takeover proposal from TPG and Japan's Takeda Pharmaceutical.
The Laval, Quebec target, which on May 19 said it had received notice of default from bondholders, was the recipient of an indicative approach that didn't include a firm price, the Wall Street Journal said.
The newspaper reported that the co-bidders swooped in the wake of an accounting scandal at Valeant "a month or two ago," before former Perrigo (PRGO) - Get Report boss Joseph Papa was installed as CEO.
People familiar with the situation said there are no current talks, the Journal reported.
Valeant has reshuffled its board twice this year after shocking the market in March when it slashed its 2016 financial guidance and said it might default on its debt.
Papa said at a conference on Monday Valeant will look at divesting noncore assets to pay down debt while emphasizing that the market is undervaluing its pipeline of drugs.
Valeant as of Thursday's close in New York was worth $9.2 billion. Its shares closed at $26.94, down 18 cents.
Valeant shares have fallen almost 90% in the past year.
Takeda shares pared initial gains in Tokyo to trade only marginally higher towards the end of the session on Friday. The acquisitive Japanese company has a market value of about yen 3.8 trillion ($34.6 billion).
Messages were seeking comment from Takeda and Valeant.