Let me help you with the actual numbers that occurred in 2005 through 2006. Guidant stock was in the 50's BSX in the 30 'sJNJ in the low 50 back then. JNJ intial offer I do not recall exactly but it was in the low 60's for 1 share of Guidant stock. THings stood that way for like 6 to 9 months or so. Then BSX entered the picture in late 2005 early 2006 and that is when the bidding war began. THe last 3 bids were BSX offering 68 for 1 guidant share. JNJ offering 72 for one Gudiant share and then BSX coming in at $80 pershare and that was the winning bid.
So when the deal closed in April 2006 one guidant share worth $80 converted to 3.5 or so BSX shares worth 22.36 at the time the deal closed.
So yes JNJ was at say 53 or so at that time. So JNJ was willing to pay much more for Guidant then what all of BSX's market cap is worth today. So with all the numbers I have provided if you wanted to you could figure out what 68 is in billions of dollars and what 72 is worth in billions of dollars Remember 80 dollars per Guidant share calculated out to be 27 point something billion dollars. BSX paid for Guidant.