Endo Pharmaceuticals disagrees with shareholder's claim that it refused to meet

By Lisa Kerner

Charlotte, N.C., March 5 - Endo Pharmaceuticals Holdings Inc. chairman Roger H. Kimmel denied refusing to meet with D.E. Shaw Valence Portfolios, LLC in a March 5 letter to the shareholder.

According to Kimmel, he and another Endo board member have met with Shaw to discuss the shareholder's concerns.

"We have been and continue to be interested in the views of all our stockholders since they may be helpful in our decision making for Endo," the letter stated.

The letter was included as part of a form 8-K filing with the Securities and Exchange Commission.

Kimmel and Shaw do agree that Endo's fourth-quarter and full-year 2007 numbers "highlight the strength and momentum" of the company's underlying business and core assets.

Shaw had urged Endo to refrain from hiring a new chief executive officer and instead sell the company to a strategic partner.

Kimmel disagrees with Shaw's idea of an auction, saying the process would be disruptive. In addition, Kimmel believes that selecting a chief executive officer is key to enhancing shareholder value.

The chairman stood by Endo's plan to expand its product line and develop a balanced portfolio through acquisitions or in-licensing.

According to Shaw, Endo should also undertake a recapitalization through a self-tender in order to repurchase $1.5 billion of the company's outstanding common equity, funded with a mix of existing cash and new debt, it was previously reported.

Shaw has a 9.6% stake in the Chadds Ford, Pa., pharmaceutical company.

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