The board of directors of interventional device firm Guidant determined today that Boston Scientific's $80 per share acquisition offer was superior to Johnson & Johnson's current agreement to acquire the firm for $73 per share, or $24.2 billion.
The aggregate value of the Natick, MA-based Boston Scientific offer is approximately $27.2 billion.
Under the terms of Guidant's merger agreement with J&J, the Indianapolis-based company must wait five business days, or until January 25, before it may change its recommendation of the J&J merger or terminate the merger agreement with J&J and enter into a merger agreement with Boston Scientific.
Boston Scientific's offer will remain open for acceptance by Guidant until 4 p.m. on January 25, the companies said.
In related news, J&J issued a statement that it considers the proposal from Boston Scientific to be a highly dilutive and leveraged transaction based on extremely aggressive business projections and, as such, one that will not provide $80 per share in value to Guidant shareholders. The company said it will consider its alternatives under the existing merger agreement with Guidant.
By AuntMinnie.com staff writers
January 17, 2006
Related Reading
Abbott amends Boston Scientific agreement, January 17, 2006
Boston Scientific raises Guidant offer, January 17, 2006
Guidant, J&J announce new purchase deal, January 16, 2006
Boston Scientific ups Guidant bid, January 13, 2006
Guidant, J&J announce new acquisition deal, January 12, 2006
Copyright © 2006 AuntMinnie.com
