Interventional device firm Abbott Laboratories said it has amended its agreement with Boston Scientific to acquire Guidant's vascular business, which is contingent on the closing of Boston Scientific's proposed acquisition of Guidant.
Under the terms of the amended agreement, Abbott would pay Boston Scientific $4.1 billion to acquire Guidant's entire vascular business on or around the closing of Boston Scientific's acquisition of Guidant.
Abbott would also pay Boston Scientific milestone payments of $250 million when Guidant's drug-eluting stent receives FDA clearance, and an additional payment of $250 million when a similar clearance occurs in Japan. Abbott said it would also provide Boston Scientific with a five-year $900 million interest-bearing loan.
Abbott said it has agreed to purchase $1.4 billion of Boston Scientific common stock (approximately 56 million shares), contingent upon the closing of the Guidant acquisition. This would represent approximately 4% of the combined company, according to the Abbott Park, IL-based firm.
Boston Scientific has been engaged in a bidding war over Guidant with Johnson & Johnson of New Brunswick, NJ. Boston Scientific today announced a new offer for Guidant that is 12% higher than a deal announced between Guidant and J&J on January 13. Boston Scientific is funding the higher offer partly with funds from the Abbott deal.
By AuntMinnie.com staff writers
January 17, 2006
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