Obviously, nobody knows what will happen. But, I have a hard time believing a takeover is out of the question. Crowded med device field? Buying BSX will give someone half the market share of stents - and probably more once the Cordis market share is absorbed by the market. Not to mention they have strong market share in many other categories. When you have that much share, you don't really feel "crowded", I dont think. Plus, the company generates tons of cash (didn't they say about $100m a month?). Again, no clue what happens...but can't believe that its totally out of the question.
Burger King is planning on making a huge offer but I hear General motors is also in the running - Oh...........I just heard Kentucky Fried Chicken would offer anything they need to outbid Victoria's Secret.
St Jude or Medtronic the FTC would never allow it. If Medtronic was to buy BSX it would give Medtronic about 75 percent of defib BIV and pacer market. FTC simply will not allow that. St Jude is smaller then BSX I do not think they could and even if they could it mould take the same market down to 2 real competitors and give St. Jude about 55 percent market share. So I do not think FTC would allow that either.
JnJ has showed an interest in the past of getting into the pacer BIV defib market which started the bidding war between JNJ and BSX for then Guidant. JNJ was almost a whole year into the deal going through regulatory process with an offer was on the table before BSX started bidding up the deal. In fact BSX employees even were doing training on JNJ processes. BSX upper management and board has a thorn in their side for anything JNJ bad blood exists between JNJ and BSX long before the Guidant deal and that just made it worse when BSX ruined JNJ deal.
The other interesting part is the deal BSX struck with Abbott to buy Guidant Vascular interventional side of then Guidant happened so fast it was clear there was a whole lot of deal making and behind the scenes work going on quickly. 5 years ago when this all happened I was told that their is a family relation between someone on the ABT board of directors and the BSX board of directors. Someone on 1 board is married to a lady who is a sister of someone on the other board. It was something like that I am not sure of the exact relation but a family tie I do remember clearly.
Plus Abbott and BSX have already showed a willingness to work together. Now has this past 5 years soiled any of that with the co licensing of Xience 5 and the same stent under BSX Promus. Who knows it might have soiled the relationship a little or it might have made it stronger behind the scenes. But the 2 have worked togethewr that is undeniable.
I actually do not think anyone is going to buy BSX. But if I had to bet on somebody that is my guess and why.
I agree. Abbott, JNJ, GE, or Siemens are likely candidates. Although of the four JNJ, GE, and Siemens have enough cash on the balance sheet to just right a check. I think alot of factors would have the board talking about a sale right now.
With CEO Ray Elliott leaving in December it would just be an opportune time for the board to just say now is the right time to field an offer.
Board members (and major shareholders) Nicholas and Abele are just plain getting old and would probably gladly push for an exit.
With BSX trading at 1x sales it is way undervalued compared to its peer which are trading over 2x sales.
It just make sense, They are on a high note right now with a beat on 1st and 2nd quarter earnings, raising guidance, and announcing a share buyback.
I read the 2nd Quarter earnings transcript. I am going to post some interesting quotes from Ray Elliott during the conference call.