Shareholders Approve Bausch & Lomb Acquisition
Last week, the Baush & Lomb shareholders approved the proposed takeover by Warburg Pincus, a private equity firm. The deal offer is for $3.67 billion as described in a report printed by the Associated Press.
The approval follows a roller coaster for Bausch & Lomb, who was in the middle of competing bids; this was reported on Hospital Buyer in July. An initial offer came from Warburg Pincus in May, for $65 per share. Following that, Advanced Medical Optics made a counteroffer of $4.2 billion in stock and cash. The Advanced Medical deal was proposed on the final day of bidding set following the Warburg Pincus offer.
However, that offer was withdrawn in August by Advanced Medical Optics. They suggested that the deal was withdrawn because Bausch & Lomb was making unrealistic demands to complete the deal. Additionally, there appeared to be disagreement in the Advanced Medical camp, with some of the major shareholders standing out against the deal.
According to reports from Bausch & Lomb, over two thirds of the shareholders approved the Warburg Pincus deal in a recent meeting. The deal is now expected to close toward the end of October. The delay is intended to allows Bausch some time to continue the current growth opportunities.
The Bausch & Lomb CEO cites that he is interested in staying with the company following completion of the merger. Ron Zarrella commenced that role in 2001.
September 25, 2007 Related topics: Mergers & Acquisitions, Corporate Financials, Ophthalmology