Actavis In Talks To Acquire Forest Labs For Up To $25 Bln : WSJ

(RTTNews) - Specialty pharmaceutical company Actavis Plc. (ACT) is in advanced talks to acquire rival drug maker Forest Laboratories Inc. (FRX) in a deal that could value Forest Laboratories at up to $25 billion, the Wall Street Journal reported citing people familiar with the matter.

The deal could be announced as early as Tuesday. However, it is possible that the talks could still fall apart, the Journal reported.

The paper also said that a combined Actavis-Forest Laboratories could offer a range of generic and brand-name medicines, reaping economies of scale of its own.

As of Friday's close, Forest Laboratories had a market capitalization of $19.3 billion, compared with $33.4 billion for Actavis.

Brent Saunders, the Chief Executive officer of Forest Laboratories, would stay at the combined company. His exact role is still being worked out, the journal reported quoting the people.

One likely beneficiary of the sale is Carl Icahn, whose Icahn Associates owns 11.4% of Forest Laboratories' shares. Icahn began agitating at Forest Laboratories in 2011, but seemed placated by the company's appointment of Saunders as CEO. Still, he has held on to his stake in Forest Laboratories.

In January, Forest Laboratories agreed to acquire privately-held specialty pharmaceutical company Aptalis Holdings Inc. for $2.9 billion in cash from private equity firm TPG Capital LP.