Cephalon Inc.’s shares fell slightly in pre-market trading a
day after the U.S. drug
company formally rejected a hostile takeover bid by Canada’s Valeant Pharmaceuticals
International.

Cephalon’s shares were down 87 cents to $76.50 on the Nasdaq
before markets opened, but still significantly higher than Valeant’s offer.

The company said Valeant’s offer “significantly undervalues”
the Pennsylvania-based drug developer in a letter to Valeant CEO Michael
Pearson

The letter, released after the close of markets on Tuesday,
said the Cephalon board has concluded that the March 24 offer of US$73 per
share was “inadequate and not in the best interests of Cephalon’s
shareholders.”

The board also called the timing of the non-binding offer,
which values Cephalon at US$5.7 billion, “opportunistic.”

It said the 30-day average Cephalon share price of $56.74 on
which the offer is based, was near the 52-week low for the company’s stock.