Teva buying Cephalon for $6.8 billion

Teva Pharmaceutical Industries Ltd. has agreed to buy Cephalon Inc. for $6.8 billion in a deal that would give the world's largest generic drug developer a range of biotechnology drugs aimed at cancer and other conditions.

Teva, based in Israel, said Monday it will pay $81.50 per share cash, marking a 5.8% premium to Cephalon's closing price on Friday. The price is a 12% premium to the since rejected $73-per-share offer from Valeant Pharmaceuticals International Inc., made March 29. The latest offer represents a 39 percent premium to Cephalon's stock prior to Valeant's unsolicited offer. (AP)