where to from here ?, page-8

A view from the Wall Street Journal

"Cephalon said its board decided to reject Valeant's offer as inadequate after a review by financial and legal advisers.

"A transaction with Valeant at this time and at the price you proposed would mean forgoing the greater value obtainable from Cephalon's strategic plan, including the value inherent" in its product portfolio and pipeline of drugs under development, Cephalon Chief Executive J. Kevin Buchi wrote to Valeant, according to a copy provided by Cephalon.

In response to Cephalon's rejection, Valeant CEO J. Michael Pearson expressed "disappointment" but indicated the company would keep pursuing Cephalon for a short time. Valeant filed papers Tuesday with the Securities and Exchange Commission asking Cephalon shareholders to remove the company's board and replace it with candidates recruited by Valeant.

"We stand ready to quickly commence and close our transaction as proposed, unless Cephalon stockholders do not support our offer, in which case we will focus our attention on other opportunities to invest our capital," Mr. Pearson said in a statement.

He also said Valeant was willing to raise its offer slightly, if the company was allowed to peruse Cephalon's books, "which we believe would take only two to three weeks."