1:1 would be great, but 1:0.9 swap works for me too. LIFE got great products but I think TMO can manage them better.
How about 1:1 stock swap with TMO? any thoughts?
NEW YORK (Reuters) - Thermo Fisher Scientific Inc made a binding offer for Life Technologies Corp on Tuesday as private equity firms raced to finalize a consortium to take the genetic testing equipment maker private, several people familiar with the matter said.
Thermo Fisher met a bid deadline on Tuesday but private equity firms working on a joint bid missed it and were working late into the evening to secure the equity required to support an offer, the people said.
Blackstone Group LP, Carlyle Group LP and Singapore's state investor Temasek Holdings were in talks with KKR & Co LP about securing the required equity and finalizing a buyout consortium, the people said.
Life Technologies would likely accept an offer past the bid deadline to keep the process competitive, the people added.
Thermo Fisher, the world's largest maker of laboratory equipment, is bidding more than $65 per each Life Tech share, two of the people said. While the exact price could not be learned, Thermo had been considering a bid of $65 to $70 per share, sources said last week.
The private equity group would likely bid close to $65 per share, the people said.
Shares of Life Tech ended up 1.3 percent at $66.19 on Tuesday, giving it a market value of $11.3 billion.
The people asked not to be named because details of the auction are not public. Representatives for Life Tech, Thermo Fisher, KKR, Blackstone, Carlyle and Temasek declined to comment or could not be immediately reached for comment.
Agreed, I forgot about the "made in China" epidemic. However, LIFE was going to downsize the small product lines anyway since outsourcing to China is the trend, anyway.
Wow are you naive. Sales decimated, product managers, decimated, loss of 20-30% of the lab jobs or more. Thermo has plenty of space that can be filled so add to your list empty buildings, maintenance jobs, security, purchasing, etc, admin support, etc., etc. They will do all they can to cut every job possible. Most of the smaller product lines will simply disappear to be outsourced to China. Life does not make their own oligos, peptides, antibodies, etc., and neither does TF. They will just use the "buy #$%$ from China" model and make extra pennies.
LIFE share price is now back to $64/share. Do you have any intelligent advice to give us?
I wouldn't be too sure of that. As I see it, Danaher will take the DNA Sequencer business since it fits nicely with their Beckman Coulter DNA test provider business. Thermo Fisher will take the lab test kit business since that is their strength. I presume there are still enough competitors in the lab test kit business that there would be no anti-trust issues. Danaher is currently not in the DNA sequencer business so no anti-trust issues there.
There are definitely going to be layoffs in accounting, legal, corporate planning, marketing and public relations. How many positions are we talking about? I don't see too many "little guys" getting laid off since both Danaher and Thermo Fisher will be looking to expand their market shares of the previously Life Technologies assets.
It is good to see KKR and Blackstone drop out of the bidding. I interpret that the going price will be higher than the current $64/share. Both KKR and Blackstone rely on steady cash flow to finance their LBOs. Danaher and Thermo Fisher take an earnings growth view of their acquisitions.
The sale of Life Technologies Corp. (LIFE) has shifted in favor of strategic buyers for the maker of DNA- sequencing equipment as some buyout firms drop out, said people with knowledge of the matter.
The odds are growing that either Danaher Corp. (DHR) or Thermo Fisher Scientific Inc. (TMO) could buy Carlsbad, California-based Life, said two people, asking not to be identified because the matter is private.
KKR Inc. (KKR), which was part of a group of bidders, has withdrawn from the process, two people said. TPG, which was bidding along with Blackstone Group LP, Carlyle Group, and Temasek Holdings Pte., withdrew from that group, they said.
Life, whose market value tops $10 billion, initially sought a private equity firm to acquire the company in a leveraged buyout. Strategic bidders later expressed interest and may be in better position because opportunities to cut costs mean they could make a higher offer, the person said.
Roche Holding AG (ROG) has also expressed an interest in Life, said a person with knowledge of the matter. The Swiss drug maker is only interested in part of the business and is less likely to be the final buyer, the person said.
Life rose less than 1 percent to $64.31 at 12:39 p.m. New York time. The shares had gained 38 percent in the past 12 months through yesterday. Danaher gained less than 1 percent to $61.56, while Thermo Fisher fell less than 1 percent to $76.24.
The company’s products can be used to provide a blueprint of a person’s DNA, information that may eventually be used to diagnose disease, identify the risks of certain conditions or better target medicines. Last year Life’s peer Illumina Inc. (ILMN) rebuffed repeated overtures from Roche.
The private equity firms had been in talks with banks to arrange financing for their bids, people familiar with the matter said earlier this month. Bids are due in mid-April and a private equity consortium could still end up being the winning bidder, one person said.
Life said in January that directors were working with Deutsche Bank, as well as Moelis & Co., to examine strategic alternatives.
“Life Technologies has no comment,” said Suzanne Hatcher, a spokeswoman for the company, in a telephone interview yesterday. Owen Blicksilver, TPG’s outside spokesman, declined to comment as did Roche spokeswoman Silvia Dobry. Kristi Huller, a spokeswoman at KKR, didn’t immediately respond to a request for comment yesterday.