BioSource s Largest Stockholder Calls Bio-Rad Bid Significantly Below Company Value

NEW YORK, April 7 (GenomeWeb News) - BioSource International today acknowledged the "unsolicited" $82-million acquisition proposal that it received from Bio-Rad Laboratories yesterday, and said that its largest shareholder considers the offer to be too low.

BioSource said that it has been informed by Genstar Capital Partners, which holds around 27 percent of the company's outstanding shares, that the proposed price "is significantly below Genstar's view of BioSource's inherent value."

Yesterday, Bio-Rad said that it intended to acquire all of BioSource's outstanding shares at $8.50 per share in cash, a proposal valued at more than $82 million. Bio-Rad owns around 5 percent of the outstanding shares of BioSource.

Noting that the offer represented a 21-percent premium to BioSource's closing price on April 5, and a 30-percent premium to its three-year average closing price, Bio-Rad CEO Norman Schwartz said in a statement that the proposal "provides an attractive premium and enhanced liquidity for BioSource shareholders."

Based on BioSource's closing price of $7.02 on April 5, BioSource was valued at approximately $68 million on that day. BioSource shares closed at $6.75 yesterday, but rose nearly 40 percent to $9.40 today, bringing the company's value to $91 million.

BioSource said that its board of directors "will review the Bio-Rad proposal and will respond following the completion of its review."

Bio-Rad also intends to nominate six directors for election to BioSource's board of directors at the company's 2005 annual meeting, which is scheduled to be held on May 24.