NEW YORK (TheStreet) -- Shares of Salix Pharmaceuticals Ltd. (SLXP) are up 1.37% to $158 in pre-market trade as some of the top 20 investors are threatening to vote down a proposed deal to buy a unit of Cosmo Pharmaceuticals, and are pressing Salix to consider selling itself instead, sources told Reuters.
North Carolina-based Salix, which makes drugs for gastrointestinal disorders, said in July it would merge with Cosmo's Irish subsidiary, a deal that would allow Salix to move its tax domicile abroad in a practice known as inversion, Reuters said.
Investors holding at least a quarter of Salix shares are considering voting the deal down, sources told Reuters.
TheStreet Ratings team rates SALIX PHARMACEUTICALS LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SALIX PHARMACEUTICALS LTD (SLXP) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."