Is BSX Going To Be Purchased

[Anonymous]

So does anyone think there are any validity to the rumors that J&J and other companies may make bids for Boston Sci? There have been several financial articles discussing it and it was brought up on our conference call. Anyone's thoughts?

 

[Anonymous]

J&J won't buy them. They got too close of a look at the CRM industry 6 years ago. At least then, it was still growing.

 

[Anonymous]

J&J won't buy them. They got too close of a look at the CRM industry 6 years ago. At least then, it was still growing.

Wrong. JnJ always wanted Guidant, still do. Boston just overpaid and outbid them, plain and simple. Biggest irony of all is that JnJ will pay far less for all of Boston Sci than what they would have spent on Guidant years ago.

 

[Anonymous]

So does anyone think there are any validity to the rumors that J&J and other companies may make bids for Boston Sci? There have been several financial articles discussing it and it was brought up on our conference call. Anyone's thoughts?

There is a company looking at them seriously:

McTeligen. It comes in a styrofoam container with the header in one compartment and the can in the other so you can assemble them fresh at implant. I'm lovin' it.

 

[Anonymous]

Wrong. JnJ always wanted Guidant, still do. Boston just overpaid and outbid them, plain and simple. Biggest irony of all is that JnJ will pay far less for all of Boston Sci than what they would have spent on Guidant years ago.

Wrong-O! JNJ wanted the DES/Stent Delivery platform that Guidant owned. Best in the business....including a bio-absorbable stent. That is why JNJ went through great lengths to get the regulators to OK the deal keeping the company virtually intact (except for peripherals). CRM business was seriously impaired by criminal activity by management, JNJ knew it and smartly renegotiated. They just didn't anticipate the back door deal Cornelius cut with Tobin and that is why they are suing BSX for $5 billion.

Look at the JNJ DES business now...they are done. Look at BSX, they claim to still be market leader although 75% of the stents they sell are made by Abbott Vascular(formerly Guidant). Abbott was the big winner, JNJ a loser and BSX signed its death warrant (to the tune of $10 billion in debt that is eating the company alive).

Pete Nicholas and John Abele have had a long running feud with JNJ since their departure. They gladly bet the ranch on the deal....Notice that they are hardly even stakeholders anymore...not bullish.

Will JNJ buy BSX? Maybe...but for different reasons than Guidant. JNJ's device position is considerably weaker and moving in the wrong direction. They are sitting on a ton of cash and are in need of a story to tell. A take-under is possible (not pay a premium on stock price), but would still be risky based on the gross mis-management on the part of BSX.

 

[Anonymous]

The answer is......no.