Obagi Fate Uncertain as New Details Emerge

Following a bidding war with rival Merz Pharma Group, Valeant Pharmaceuticals appears set to acquire Obagi Medical Products. Valeant's original offer came in March, when the company announced that it would acquire Obagi at $19.75 per share, in a deal worth approximately $344 million. Then, in early April, Merz Pharma Group formally proposed to acquire Obagi, with an unexpected $383.5 million bid. Merz sent a letter to Obagi Medical Products Inc.'s board offering to buy all of the company's stock for $22 per share. According to the Associated Press, Merz said that it had been in private talks with Obagi before that deal was announced and wasn't aware that it was considering signing a deal with another company so quickly. Following this, Obagi announced that Valeant had ammended its original offer and increased its offer to $24 per share. The expiration of the tender date is April 23 at midnight. As of early April, Merz has not indicated whether it plans to make a higher offer.