January 13, 2006
Bidding for Guidant Continues
Guidant's board accepted Johnson & Johnson's raised offer of $68 a share despite Boston Scientific's higher offer of $72. Boston Scientific has raised its offer to $73 after announcing that it would not make money on its $72 offer until 2009. If J&J wants to compete it may have to make an offer close to the the $76 that it made last year and withdrew because of Guidant's product liability problems. J&J stock has been steadily falling since it announced the good news that Guidant had accepted its offer. On wonders how the J&J valuation analysts will justify the new higher values. Shareholders of Guidant will inevitably sue if Guidant accepts any J&J offer under Boston's $73. Perhaps the Judges will release J&J from all this.
TrackBack URL for this entry:
Listed below are links to weblogs that reference Bidding for Guidant Continues: