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Boston Scientific Corporation Message Board

  • fr5427iu fr5427iu Dec 24, 2011 7:56 PM Flag

    IMMINENT BUYOUT RUMORS - MUST SEE LINK

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    • BSX is owned 90%+ by the institutional investors. They can sniff a good deal when they see one. Trading at $5 and forward P/E of 11, BSX would be a steal for JNJ or someone else for ~$20B.

      At the time of Guidant/BSX acquistion, the combined companies were north north of $50B. Imagine paying only $20B for BSX with all their product lines and no quality issues? That would be a steal!

    • This is actually a good summary of the potential for a buyout. Imminent buyout rumors? I don't think so, but 6 months down the road...very possible. Once the economy gets a little more on its feet, I think it could very well happen. The Obama health care bill is creating a lot of confusion and uncertainty going into 2012 - so until that is sorted out (medicare payouts to doctors, etc), I think it reduces the change of a buyout. BSX would be a pretty big bite even for JNJ, but as the article mentions, the integration would be easier because JNJ already has similiar products. Unlike others, I don't see a huge regulatory hurdle now that JNJ is essentially out of the stent market. The aricle mentions Blackstone, that mention alone tells me that the person that wrote this has credibility...... There are several other large companies with health divisions that would love to add BSX's revenue stream (think large multi's). Take a position - downside risk is limited, but you will likely have to wait for the payback.

      • 1 Reply to newyorksalute
      • burnaka@sbcglobal.net burnaka Dec 25, 2011 1:48 AM Flag

        You bring up a 2007 article and entitle the post imminent buyout rumors. That is hilarious. JnJ had what about 450 million stent business and exited the bus. Abbott has better products. Bsx has recently paid 2 billion in patent infringements with more suits pending. So we have a laggard in the industry, with some nice debt and lawsuits pending and people are grasping at 2007 articles hoping to prop up the stock. The stock will bounce around some for sure, and they do have a chance to pick up some of the jnj business, jnj had 14% market share. Maybe bsx gets 100 million not enough to make a difference with 1.5 billion shares, and 4.5 billion in debt. Bsx has decent revenue, margins, but this will take time. No buyout on horizon until all the suits are done, and the debt is addressed.

        http://online.wsj.com/article/SB10001424052702304186404576387420811221538.html

 
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