Biopharmaceutical company Cephalon has received a takeover offer from Valeant Pharmaceuticals, on the same day as it made a bid for ASX-listed ChemGenex (ASX:CXS).
Canada's Valeant has offered US$5.7 billion ($5.51 billion) for Cephalon in an unsolicited offer.
ChemGenex, an oncology-focused biotech company, said on Wednesday that there is nothing in the bid documents it received from Cephalon subsidiary Cephalon CXS Holdings that would allow the offer valuing it at $225 million to be withdrawn due to a change of control.
The Corporations Act obliges Cephalon to make offers to shareholders within two months, ChemGenex said, but added that it will update the market if it becomes aware of a change in situation.
Cephalon CXS has offered $0.70 cash for each ChemGenex share it does not own and $0.02 cash for each listed option for a total of $159 million.
The company had exercised its own ChemGenex options and convertible notes to acquire a 27.6% stake prior to its takeover bid.
The deal was a 59% premium on the last trading price of CXS shares prior to the offer. The ChemGenex board had unanimously approved the offer.
CXS shares fell 3.7% in Wednesday's trading to $0.650, but had climbed 53.41% on Tuesday after the offer from Cephalon was disclosed.