The new Boston offer for Guidant is worth in the region of $24.8 billion which compares with the Johnson & Johnson offer of $68.06 per share representing a total deal value of $23.2 billion. The eventual winner of the bidding war between the two companies will immediately become a major player in the $10 billion heart device market.
Despite announcing on Wednesday that it had reached a “definitive acquisition agreement” with J&J, Guidant has now indicated that it will “evaluate all aspects of the offer from Boston Scientific.”
The revised offer from Boston also addresses concerns that the Guidant board had raised about the original offer, including assurances that the deal will close by the end of the first quarter of 2006.
“Our amended offer addresses all of the outstanding issues raised by Guidant’s Board,” said Pete Nicholas, chairman of Boston Scientific. “We have increased the value of our offer, satisfied any perceived antitrust concerns and provided shareholders increased certainty of value by agreeing to pay interest on the $73 share price if the transaction is not closed by the end of the first quarter.”