Depomed Inc (DEPO) Stock Soars on Takeover Talk

Final bids will be taken on Wedensday

Depomed Inc (NASDAQ:DEPO) stock was up on Tuesday following reports that KKR & Co. L.P. (NYSE:KKR,KKR-A,KKR-B) wants to buy it.

Depomed Inc, DEPO, KKR & Co. L.P., KKRAccording to estimates, KKR & Co. L.P. will likely be paying $25 per share for Depomed Inc. DEPO stock was sitting at $18.02 per share when the market closed on Friday. If this offer is what KKR goes with, it would set the company’s value at more than $1.5 billion.

The report claims that KKR & Co. L.P. is planning to combine Depomed Inc with its own Arbor Pharmaceuticals. Opioids are currently seen in a negative light due to abuse from users. The drug kills over 28,000 citizens in the United States each year. This has resulted in Endo International plc (NASDAQ:ENDP) pulling its opioid drug Opana from shelves.

Previous reports have claimed that Depomed Inc has shot down other companies that tried to purchase it. However, this newest report claims that it will take final bids on Wednesday. Daichi Sankyo is another company that may compete with KKR & Co. L.P. to acquire the opioid company, reports The New York Post.

The move to start accepting bids likely came after shareholders put pressure on several board members for refusing offers. There are currently eight firms that are covering Depomed Inc stock. Five of them give it a “Strong Buy” rating, two rate it as a “Hold” and one has a “Sell” rating for the company.

DEPO stock was up 8% and KKR stock was up 2% as of Tuesday morning.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/01/depomed-inc-kkr-co-l-p-depo/.

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