UPDATE 2-Valeant in talks to hire Perrigo's Papa as CEO -source

(Adds Perrigo statement, stock move)
By Carl O'Donnell
April 22 (Reuters) - Drugmaker Valeant Pharmaceuticals (NYSE:VRX)
International Inc VRX.TO is seeking to appoint Joseph Papa,
Perrigo Co (NYSE:PRGO) Plc's PRGO.N boss, as its new chief executive, a
source familiar with the matter said.
The Canadian drugmaker is negotiating a contract with the
Papa and it aims to announce his appointment as soon as next
week, the source told Reuters on Thursday.
However, Perrigo's board has not said whether it would allow
Papa to void a non-compete clause in his contract, the source
said.
Valeant declined to comment on what it called "rumors."
Ireland-based Perrigo issued a press release on Friday
morning saying it does not comment on "speculation or market
rumor."
Valeant shares rose 6 percent to $35.40 in pre-market New
York trading from a close of $33.33.
The Wall Street Journal reported on Thursday that Valeant
was looking to name Papa as its next CEO.
Valeant said in March CEO Michael Pearson (LON:PSON) was leaving the
company, just three weeks after returning from a two-month
medical leave. The company said at that time Pearson would
remain in his post until it finds his successor.

Debt-laden Valeant has recently settled with some of its
lenders after a missed deadline for filing its annual report put
the company at risk of a default. It secured an extension until
May 31 but has pledged to file its statements toward the end of
April.
Reuters reported last week Valeant had brought in investment
banks to review its options amid interest from buyout firms and
other companies in its businesses.
Pearson and activist investor William Ackman, who joined
Valeant's board last month, have said Valeant was considering
selling non-core assets to help reduce its $30 billion debt
pile.
Papa last year vigorously defended Perrigo against a hostile
takeover offer from Mylan NV MYL.O , saying that the offer
undervalued the company. Perrigo shares fell 4 percent to
$123.25 on Friday in pre-market New York trade.