Bayer buying part of Abbott?

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I would recommend doing research at the wsj.com (Wall Street Journal). If this is true, the WSJ will have it in print already. Otherwise, it may be a rumor that got started by Abbott insiders.
 




Anonymous said:
I would recommend doing research at the wsj.com (Wall Street Journal). If this is true, the WSJ will have it in print already. Otherwise, it may be a rumor that got started by Abbott insiders.
Click to expand...

Nestle, the food giant has also an eye on Abbott - diagnostics, nutrition and part of pharma. They have over 20 billion cash to reinvest after having sold Alcon and are currently developing a new kind of healthcare products between food and drugs combined with diagnostics see http://www.nestlehealthscience.com/Pages/default.aspx
 




Anonymous said:
I would recommend doing research at the wsj.com (Wall Street Journal). If this is true, the WSJ will have it in print already. Otherwise, it may be a rumor that got started by Abbott insiders.
Click to expand...

LONDON | Mon Dec 5, 2011 6:04am EST

LONDON Dec 5 (Reuters) - Abbott Laboratories has no intention of selling its soon-to-be-separated pharmaceuticals business to another drugmaker and any potential bidder would struggle to persuade management otherwise, its chief executive said on Monday.

Miles White told an industry conference in London speculation that Abbott's drugs unit might be touted for sale was "incorrect".

Abbott announced plans in October to split itself in two, in a move designed to increase Wall Street's focus on the remaining diversified medical product business, which has tended to be overshadowed by pharmaceuticals.

The move prompted immediate talk the drugs arm could prove an attractive acquisition target. Analysts at Jefferies, for example, suggested it might be snapped up by the likes of Merck , Roche, AstraZeneca or Bayer in a couple of years.

White -- who will run the diversified products company while his colleague Richard Gonzalez becomes CEO of pharmaceuticals -- said this idea was wide of the mark.

"Is one or other (of the two companies) an acquisition candidate? The answer is 'no'," he told the FT Pharmaceutical and Biotechnology conference.

"You're probably going to end up with two companies that are in the $40-45 billion range on day one. We're not offering them for sale ... somebody would have to have an awful lot of cash and they'd have to have a 'yes' from a CEO and that would be a tough 'yes' to get."

Abbott shares have been held back for years on concerns the company is too dependent on its flagship rheumatoid arthritis drug Humira, one of the world's top-selling medicines at more than $8 billion a year.

Humira, an injected drug, is facing growing competitive threats, including possible cheaper generic versions and a pill being developed by Pfizer.
 




Anonymous said:
LONDON | Mon Dec 5, 2011 6:04am EST

LONDON Dec 5 (Reuters) - Abbott Laboratories has no intention of selling its soon-to-be-separated pharmaceuticals business to another drugmaker and any potential bidder would struggle to persuade management otherwise, its chief executive said on Monday.

Miles White told an industry conference in London speculation that Abbott's drugs unit might be touted for sale was "incorrect".

Abbott announced plans in October to split itself in two, in a move designed to increase Wall Street's focus on the remaining diversified medical product business, which has tended to be overshadowed by pharmaceuticals.

The move prompted immediate talk the drugs arm could prove an attractive acquisition target. Analysts at Jefferies, for example, suggested it might be snapped up by the likes of Merck , Roche, AstraZeneca or Bayer in a couple of years.

White -- who will run the diversified products company while his colleague Richard Gonzalez becomes CEO of pharmaceuticals -- said this idea was wide of the mark.

"Is one or other (of the two companies) an acquisition candidate? The answer is 'no'," he told the FT Pharmaceutical and Biotechnology conference.

"You're probably going to end up with two companies that are in the $40-45 billion range on day one. We're not offering them for sale ... somebody would have to have an awful lot of cash and they'd have to have a 'yes' from a CEO and that would be a tough 'yes' to get."

Abbott shares have been held back for years on concerns the company is too dependent on its flagship rheumatoid arthritis drug Humira, one of the world's top-selling medicines at more than $8 billion a year.

Humira, an injected drug, is facing growing competitive threats, including possible cheaper generic versions and a pill being developed by Pfizer.
Click to expand...

"It's not about the money, I want to retire as a St. Louis Cardinal" A. Pujols.....
 
























Anonymous said:
Nestle, the food giant has also an eye on Abbott - diagnostics, nutrition and part of pharma. They have over 20 billion cash to reinvest after having sold Alcon and are currently developing a new kind of healthcare products between food and drugs combined with diagnostics see http://www.nestlehealthscience.com/Pages/default.aspx
Click to expand...

$20 billion isn't even close... Typically, there would be a 35%-40% premium on the current stock price which capitalizes out currently in the mid-$80 billion range, which means with the premium you are looking at $115 billion+. In some cases the going rate for a company in good shape (and we are not just talking about one division such as PPD), the price could be at a 3.5-5 multiple of the current annual revenues, which would put the price at a minimum in the $150 billion. However, for a company with alot of financial resources over the next 5 years, it could be worth it because the breakup volume would likely be twice that. It would likely take about 5 years to deal off the various businesses.

Maybe this could be a new model for generating profits for a large company.... Buy large companies and sell it off in pieces.
 








Anonymous said:
$20 billion isn't even close... Typically, there would be a 35%-40% premium on the current stock price which capitalizes out currently in the mid-$80 billion range, which means with the premium you are looking at $115 billion+. In some cases the going rate for a company in good shape (and we are not just talking about one division such as PPD), the price could be at a 3.5-5 multiple of the current annual revenues, which would put the price at a minimum in the $150 billion. However, for a company with alot of financial resources over the next 5 years, it could be worth it because the breakup volume would likely be twice that. It would likely take about 5 years to deal off the various businesses.

Maybe this could be a new model for generating profits for a large company.... Buy large companies and sell it off in pieces.
Click to expand...

Well the 20 billion are only the cash, they easily could leverage with loans up to 100 billion provided by the banks to take over parts of Abbott
 




















Anonymous said:
This thread is 100% false. Bayer will do nothing close to any type of purchase with abbott.
Click to expand...

I agree. And Nestle are talking to Pfizer not us. I think we'll be chopped into little pieces with massive layoffs to show the market how lean n mean we are. Every recruitment agency I know has lots of us on their books. Going to be a race to find a new home.
 




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