Potential Bidding War for Bausch and Lomb Erupts
Advanced Medical Optics, Incorporated made an offer to purchase Bausch and Lomb, Incorporated which included $75 per share, amounting in a total deal valued at $4.23 billion. The $75 share offer is $45 in cash and $30 in stocks.
Warburg Pincus, a private equity firm, placed a bid of their own (pdf) in May of $3.65 billion. The offer from Advanced Medical Optics came on the last day of the open bidding period. Under the contract terms, Bausch and Lomb will pay a $40 million breakup fee if they do not finalize the original deal with Warburg Pincus.
Bausch and Lomb’s financial difficulties commenced, on part, when a contact lens cleaner was recalled last year. The solution was believed to have caused an outbreak of severe eye infections.
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July 6, 2007 Related topics: Ophthalmology