UPDATE 1-Endo shareholder asks board to assess sale of company

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Feb 27 (Reuters) - A major shareholder of Endo Pharmaceuticals Holdings Inc (ENDP.O) said it has asked Endo's board to immediately assess the potential of selling the company to a strategic partner before hiring a new chief executive.

The shareholder, D. E. Shaw Valence Portfolios LLC and its affiliates, which own about a 9.8 percent stake in the company, said in a letter filed with U.S. regulators that Endo's board has refused to meet in order to discuss its concerns with the company's strategic direction.

D. E. Shaw said Endo Pharmaceuticals should not hire a new CEO at this time since any potential hire would likely want to immediately engage his or her own plan. Endo's CEO Peter Lankau had resigned, effective March 1.

The shareholder alleged that Endo Pharma is more focused on a large acquisition rather than optimizing the value of existing lead assets Lidoderm and Opana and the profitable generic pain business.

If a strategic process does not lead to a sale of the company, Endo should repurchase $1.5 billion through a self-tender to provide a platform for significant earnings growth, D. E. Shaw said in a letter to the company's board.

Shares of Endo closed at $27.24 Wednesday on Nasdaq. (Reporting by Aditi Samajpati in Bangalore; Editing by Bernard Orr)