(Reuters) - Actavis Plc (N:ACT) is in buyout talks with Salix Pharmaceuticals Ltd (O:SLXP), CNBC reported on Wednesday.
Allergan Inc (N:AGN) has also been in talks with Salix as it tries to fend off an unwanted bid from Valeant Pharmaceuticals Inc (TO:VRX).
Allergan has questioned the sustainability of Valeant's growth and business model and "opaque" financial disclosures.
Valeant said on Wednesday that such concerns were "completely unfounded."
"In the third quarter, we expect our results to be better than consensus on revenue, and better than the guidance we provided in our second quarter earnings call for Cash EPS, organic growth, restructuring charges and adjusted cash flow from operations," Valeant Chief Executive Michael Pearson said in a letter to Allergan's board.
(This story corrects the first paragraph and headline to say Actavis is in buyout talks with Salix, not Allergan in buyout talks with Actavis. Adds second paragraph to say Allergan has been in talks with Salix after approach from Valeant)
(Reporting by Vidya L Nathan; Editing by Saumyadeb Chakrabarty)