Biosite’s board of directors determined that Inverness Medical’s offer to acquire the company was superior to Beckman Coulter’s. The company has less than a week to up its $85 bid to a price deemed at least as favorable as Inverness’ $90 proposal.
On March 26, through a cash tender offer, Beckman Coulter said it would pay $1.55 billion, or $85 per share, for Biosite. On April 5, Inverness countered with an unsolicited letter proffering $90 per share except the 4.9% it already owns. The company further solidified its proposal with today’s binding offer to Biosite.
Biosite continues trading above both company’s merger bid at $92.92. Beckman Coulter still hasn’t regained the value it lost with the initial proposal and opened today at $62.30. The day before it made Biosite the offer, it closed with a $67.08 price but consequently its stock has been stuck between approximately $60 and $66. The same is true for Inverness, which was priced at $44.81 just prior to its rival bid and is now at $39.90.
Beckman Coulter has until 12:01 a.m., PDT, May 2 to make an enhanced binding offer. Beckman Coulter’s original submission will expire at 12 a.m., EST, April 27 unless either Beckman Coulter or Biosite extends the date.
If a revised transaction is not made, Biosite will axe its agreement with Beckman Coulter and enter into the proposed Inverness merger deal. Biosite will be required to pay Beckman Coulter a $50-million transaction fee.