Interventional device firm Boston Scientific of Natick, MA, has offered to acquire competitor Guidant of Indianapolis in a deal valued at $25 billion. The offer sets up a potential showdown with medical device giant Johnson & Johnson of New Brunswick, NJ, which has been working with Guidant's management on its own acquisition deal.
Boston Scientific said it would offer to buy all outstanding Guidant shares for a combination of cash and stock worth $72 per Guidant share. The offer represents a premium of 14% over the most recent price agreed upon between Guidant and Johnson & Johnson.
Boston Scientific said it would be prepared to divest Guidant's vascular intervention and endovascular businesses, while retaining shared rights to Guidant's drug-eluting stent division, if necessary to win regulatory approval for the deal.
Johnson & Johnson and Guidant first announced an acquisition deal almost a year ago, but consummation of the purchase has been held up after a series of Guidant product recalls.
By AuntMinnie.com staff writers
December 5, 005
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Guidant launches cobalt chromium stent in Japan, October 7, 2005
FDA criminal investigators in Guidant probe -- NYT, September 29, 2005
J&J, Guidant merger gets European clearance, August 25, 2005
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