In response to Beckman Coulter matching Inverness Medical Innovations' bid for Biosite, the company raised its proposal by $2.50 per share. Inverness’ cash tender offer is now set at $92.50 per share except the 4.9% it already owns.
"As we have stated before, we are committed to consummating this compelling transaction and through this offer have enhanced the speed, certainty, and value of our proposal accordingly,” asserts Ron Zwanziger, chairman, president, and CEO of Inverness. “We are pleased that Biosite's board has previously recognized the superior value this strategic combination represents and are confident that Biosite will respond favorably to our new offer and once again deem it a superior proposal."
The race to take over Biosite began about a month and a half ago, with Beckman Coulter making a tender offer of $85 per share. The price was 53% more than Biosite’s shares at the time. Since then, Biosite, has enjoyed the highest value, year-to-date. The company’s stock got a further boost with Inverness’ rival unsolicited letter stating an offer of $90 per share except what it already owned. Biosite has since traded above $90, barely even dropping below $92.5. It opened today at $94. After Biosite deemed Inverness’ proposal superior, Beckman Coulter matched the company’s bid on May 2. Both potential acquirers are trading below their respective closing price before intial offers were made. Beckman Coulter opened at $64.24, and Inverness at $40.13.
At the time Beckman Coulter rivaled Inverness' proposal, it stated that all necessary regulatory clearances had been received. As of 5 p.m., EDT, May 1, approximately 70,000 shares had been tendered and not withdrawn, according to the company. The company is declining to comment at this time.
The ball, for now, is back in Biosite’s court as it contemplates Inverness’ most recent enhanced take-over price. Inverness’ letter states that the company may withdraw its offer in the event that Biosite does not make a public announcement by 5:00 p.m., PDT, today to the effect that, among other things, the Biosite board of directors has determined that the Inverness offer constitutes a superior proposal. In addition, Inverness may withdraw its offer in the event that Biosite fails to transmit a written notice to Beckman Coulter by 5:00 p.m., PDT, today, stating that the matching period shall expire no later than 11:59 p.m., EDT, May 15. If Inverness does not withdraw the offer, it will remain open until 8:00 a.m., EDT, May 16, 2007.