Valeant Pharmaceuticals International said it increased its offer for US based Salix Pharmaceuticals to $10.96 billion in cash, topping Dublin based Endo International's bid of $10.93 billion in cash and stock for the bowel drug maker.

Salix has agreed to Valeant’s new offer of $173 in cash, which is higher than its previous bid of $158 per share in cash made late last month, the two companies said in a joint statement on Monday.

Endo on Wednesday offered to buy Salix in a deal that was worth about $175 per share in cash and stock. As of Friday’s close, Endo’s offer was worth $172.56 per share. The company withdrew its offer on Monday.

In a statement, Endo said it was “disappointed” with the outcome.

“We have been and will continue to be disciplined in our approach to potential acquisitions. We would like to wish Salix and Valeant continued success as they move forward with their transaction. As a next step, Endo is focusing our attention on other opportunities in our robust deal pipeline and on maximising our organic growth initiatives including progressing our R&D pipeline. We will continue to drive Endo’s growth as a global leader in specialty pharmaceuticals and look forward to creating value for our shareholders while improving patients’ lives,” the company said.

Salix shares rose 2.7 per cent to $174 in premarket trading on Monday, while Valeant’s US-listed shares rose 1.2 per cent to $199.80.

Valeant’s new offer provides Salix stockholders with about $1 billion more in cash, Valeant said.

Endo, which makes drugs that focus on pain management, had expressed interest in buying Salix on several occasions, but had been rebuffed, sources told Reuters in February. Valeant’s new offer is calculated based on Salix’s 63.33 million shares outstanding as of Feb. 23, according to Thomson Reuters data. Valeant said its bid gave Salix an enterprise value of about $15.8 billion.

Endo was not immediately available for comment.

Reuters