Valeant, BlackRock rise in after-hours trading

LOS ANGELES (MarketWatch) — Valeant Pharmaceuticals International Inc. shares jumped Tuesday evening after the company offered to buy biopharma firm Cephalon Inc., and BlackRock Inc. shares rose following their selection to enter a key U.S. equity index.

Valeant shares
 gained 10% to $48.96 in heavy volume, and Cephalon
 shares jumped 24% to $72.89 before they were halted in late-session trade. Valeant went public with an offer to buy Cephalon for $73 a share in cash for a total of about $5.7 billion. That values Cephalon at around 29% above its 30-day trading average, according to Valeant.

Valeant went public with the offer, saying Cephalon’s management has been unwilling to engage in discussions in a timely manner after “several private approaches.” Valeant offers to buy Cephalon for $73 a share.

Valeant said it will work to replace Cephalon’s current board with its own nominees during a solicitation process next week. The proposed deal would be entirely debt financed, Valeant said, adding that Goldman Sachs & Co. has provided a “highly confident letter” for the full amount of the financing.

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BlackRock shares
 advanced 4.3% to $194.50 when S&P Indices said the investment management company will replace Genzyme Corp.
 in the S&P 500 Index
 after the close of trading on Friday. Genzyme is being bought out by Sanofi-Aventis
 for $74 a share.

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Better-than-expected quarterly results at Tibco Software Inc. didn’t spur a rise in the company’s share price. Tibco shares
 fell 5.5% to $24.82. They finished the regular session 0.5% higher, leaving their year-to-date advance at 33%.

The business software maker said fiscal first-quarter earnings excluding one-time items were 16 cents a share. Revenue increased to $185.3 million from $155 million in the year-ago period. Analysts surveyed by FactSet Research had expected earnings of 15 cents a share on revenue of $182.5 million.

Net income attributable to Tibco was $16 million, or 9 cents a share, compared with $10.4 million, or 6 cents a share, in the year-earlier period.

In scant volume, shares of Sealy Corp.
 fell 4.7% to $2.65. The mattress maker swung to a fiscal first-quarter loss of $902,000, or a penny a share. A year ago, it earned $5.7 million, or 6 cents a share. Adjusted earnings fell to 1 cent a share from 4 cents a share a year earlier. Revenue fell $305.5 million from $311.9 million. Analysts had projected earnings of 3 cents a share on $326 million in sales.

Ahead of the late-trading session, the tech sector latched to higher ground as gains in Cisco Systems Inc.’s
 shares offset a fall in shares of Hewlett-Packard Co.
  and Intel Corp.
 . Cisco leads tech gains while Intel falls.

See also

The Nasdaq Composite Index
 rose 1% to 2,756.89. The Dow industrials
 finished up 0.7% at 12,279.01 and the S&P 500 Index gained 0.7% to 1,319.44. Stocks gained ground after a report showed U.S. consumer sentiment fell, though not as hard as some had expected. U.S. stocks escape losses after consumer-confidence report.

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