Johnson & Johnson Resumes Talks With Actelion For Potential Takeover

(RTTNews) - Johnson & Johnson (JNJ) is back in the discussion table for a potential takeover of Swiss biotechnology firm Actelion Pharmaceuticals Ltd.(ALIOF.PK).

The drug giant, which had withdrawn from takeover talks with Actelion last week, confirmed Wednesday that it has entered into exclusive negotiations with Actelion.

The company said there can be no assurance that any transaction will result from these discussions, and that it will not make any additional comments until a formal agreement.

It was in late November that Johnson & Johnson confirmed its preliminary talks with Actelion regarding a potential transaction. Following the news, Actelion's shares had climbed around 17 percent.

As per a Bloomberg report, Actelion rejected an initial proposal valued at about $246 per share, following which Johnson & Johnson raised the bid to more than $250 per share. However, on December 13, Johnson & Johnson confirmed that it has ended discussions with Swiss biotechnology Actelion, noting that it was not able to reach an agreement that it believed would create adequate value for its shareholders.

During the same time, Actelion confirmed that it is engaged in discussions with another party regarding a possible strategic transaction.

Meanwhile, the Wall Street Journal reported in mid December, citing people familiar with the matter, that French drug giant Sanofi SA (SNYNF, SNY) is in talks for a deal with Actelion that could value the Swiss firm at as much as $30 billion.

Actelion has been a potential takeover target for years. Its Chief Executive Officer and co-founder Jean-Paul Clozel previously had said the company wanted to remain independent.