Interventional device developer Guidant and Johnson & Johnson of New Brunswick, NJ, reported that the firms have reached a new agreement whereby J&J will acquire Indianapolis-based Guidant for $23.2 billion in fully diluted equity value.
Under the new agreement, J&J will pay $37.25 in cash and 0.493 shares of its common stock for each outstanding share of Guidant common stock. Valued as of the market close yesterday, the transaction has a per-share value of $68.06 to Guidant shareholders.
J&J said it has secured all regulatory clearances and satisfied all other conditions to close the transaction.
Guidant's board of directors issued a recommendation that its shareholders vote in favor of the revised merger agreement at a scheduled January 31 shareholder meeting.
In related news, interventional device firm Boston Scientific of Natick, MA, which has also been courting Guidant, issued a statement that its $72 per-share offer is superior to the $68.06 per share being offered by J&J.
Boston Scientific said that its discussions with Guidant are ongoing and that it intends to vigorously pursue the transaction to its completion.
By AuntMinnie.com staff writers
January 12, 2006
Related Reading
Guidant expects Q4 sales downturn, January 10, 2006
Guidant schedules J&J vote, December 30, 2005
FDA says Guidant reports more device failures, December 30, 2005
FDA issues warning to Guidant, December 27, 2005
Guidant to hold discussions with Boston Scientific, December 8, 2005
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