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Inverness, Elbowing In on Beckman, Makes Unsolicited Bid for Biosite; Biosite 'Evaluating' Offer

NEW YORK (GenomeWeb News) — Beckman Coulter has a rival trying to foil its planned $1.6-billion acquisition of Biosite.
 
Biosite said today it is reviewing an unsolicited acquisition offer from Inverness Medical Innovations to acquire the diagnostics company at a higher price than Beckman Coulter offered late last month.
 
Beckman has responded today by stating its “firm commitment” to buy the company in the next 30 days.
 
As GenomeWeb Daily News reported, Beckman offered to buy Biosite for $85 a share, a 54-percent premium over the company’s value before the offer.
 
When Beckman made the offer known, Biosite’s share price surged into the $84 range, while Beckman’s stock slid 6 percent on fears it was paying too much for the company.
 
But according to Biosite today, Inverness is offering to pay $90 a share to acquire the company under “substantially similar business terms” as Beckman’s offer. In a letter to Biosite, Inverness, which already owns 5 percent of Biosite’s shares, said the offer would cover the entire remaining 95 percent of the company’s shares. Biosite said Inverness has secured commitments from the company’s financial backers.  
 
In its statement today, Biosite said its board of directors, financial adviser Goldman Sachs, and legal advisers are “evaluating Inverness’ letter,” which said the company could produce a draft of its proposed offer in two days.  

The new bid caused Biosite’s stock to surge 9 percent to $92.15 after the opening bell this morning.

 

Beckman responded today by saying its offer it’s a sweeter and sounder deal. Beckman said its proposal is “clearly superior” to that offered by Inverness. It also questioned Inverness’ ability to pull together the financing, saying the “highly conditional nature of its claimed ‘commitments’ leaves very much in question.”
 
Beckman also reasserted the value its resources would offer Biosite’s shareholders in the future. Beckman CEO Scott Garrett said his company “has the resources to invest in Biosite's future,” and said it is “uniquely positioned to realize value from the combination for Beckman Coulter's stockholders."
 
Beckman added that its subsidiary, Louisiana Acquisition Sub, already commenced its offer on April 2, and said an Inverness purchase could take months to complete. Beckman’s tender offer will expire on April 27.

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