Posts for Ticker ‘BOL’

Media Digest 7/6/2006 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, Advanced Medical Optic (EYE) has made a $4.23 billion bid forBausch & Lomb (BOL).

Reuters writes that UBS has replaced its CEO after loses at it hedge fund.

The Wall Street Journal reports that Microsoft (MFST) will take a $1.1 billion charge for costs related to warranties for its Xbox.

The Wall Street Journal writes that Congress is passing a bill the would allow OPEC members to be sued under antitrust laws.

The Wall Street Journal also writes that hackers have figured out ways to get passed some of the restrictions AT&T (T) and Apple (AAPL) have put on the iPhone.

The Wall Street Journal writes that Motorola (MOT) will take a $101 million charge for laying off employees.

The New York Times writes that the new head of Siemens (SI) plans to overhaul the company and makes its actions more transparent.

The FT writes that the head of Nestle is worried that rising food prices, based to some extent on use of corn for biofuel and demand in China and India, could cut margins.

The FT also writes that Dell (DELL) is looking to retail store sales in Asia to help with it comeback.

Barron’s reports that Cablevision (CVC) could be worth twice what the Dolan family plans to pay for it.

Douglas A. McIntyre

Posted on: July 6, 2007 – 3:11 am in Uncategorized, , , , , , , , ,

Is $75.00 For Bausch & Lomb the FINAL Offer?

Bausch & Lomb (BOL-NYSE) has received a higher buyout price from Advanced Medical Optics (EYE-NYSE) (or ‘AMO’ hereafter)  in a cash and stock merger where Bausch & Lomb’s shareholders would receive $45.00 in cash and roughly $30.00 in AMO stock, valued based on the average closing price of the AMO common stock for five trading days prior to the date a definitive agreement is signed. 

The new proposal is subject to termination of Bausch & Lomb’s previously announced merger agreement with Warburg Pincus and the execution of a definitive merger agreement with the company. The terms are subject to include that ‘AMO’ will have up to 12 months to close the transaction and that interest would be paid in cash with respect to the purchase price by ‘AMO’ at the rate of 7.2% per annum beginning six months after a definitive merger agreement is executed. BUT, the proposal is not subject to a financing condition and that may be an important kicker since there was a worry that this was too large of a bite for the company.

We had noted on May 16 Bausch & Lomb Selling Itself Away Too Cheap and then again on May 24 we noted that Bausch & Lomb May Get a Higher Bid.

Ultimately, this may not even be the real and final-final offer either.  Warburg Pincus or another group could decide to pony-up the cash, and they might not have to pay the full $75.00 to win.  In a cash and stock deal with some antitrust issues (in lens solutions) and with a very long close date, you could always expect a seller to accept terms from someone else.  So there is always the chance that a higher bid may be hoped for by holders.  Now the main question is at what point there ceases to be any value to a buyer.  Is the Beholder’s eye still even looking to beauty?

Jon C. Ogg
July 5, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 5, 2007 – 6:36 pm in Mergers and Buy Outs, ,

Bausch & Lomb May Get a Higher Bid

It looks like there is going to be a new bidder in the buyout for Bausch & Lomb (BOL).  Advanced Medical Optics (EYE-NYSE) is reportedly forming a bid according to CNBC’s David Faber that would trump the Warburg Pincus buyout offer of $65.00 per share.  We had noted that Bausch & Lomb was selling itself far too cheapback on may 16, 2007 and that it had traded in the $70.00 handles backin the late 1990’s and had traded over $80.00 in recent years.

The issue here is that this would truly be a public leveraged buyout as Bausch & Lomb is larger and has a higher market cap than Advanced Medical Optics.  That is not an ultimate deal killer because companies can borrow and partner with other firms just like the private equity firms can.

Bausch & Lomb shares are up 5% at $70.00 pre-market and Advanced Medical Optics shares are down 2.3% at $41.50 in pre-market activity.  This may not be the final offer either, so there is always the chance that a higher bid may be hoped for by holders.

Jon C. Ogg
May 24, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: May 24, 2007 – 8:14 am in Consumer Goods, Mergers and Buy Outs, ,

Bausch & Lomb Selling Itself Away Too Cheap

Bausch & Lomb (BOL-NYSE) announced today that it has entered into a definitive merger agreement with affiliates of Warburg Pincus, the global private equity firm.  The transaction is valued at approximately $4.5 billion, including approximately $830 million of debt.  Bausch & Lomb common stock will be acquired for $65.00 per share in cash.

While this is a tiny premium to today’s price the companies are claiming this is a 26% premium over the volume weighted average price of Bausch & Lomb’s shares for 30 days prior to press reports of rumors regarding a potential acquisition.

Bausch & Lomb’s Board of Directors, following the recommendation of a Special Committee composed entirely of independent directors, has unanimously approved the agreement and recommends that Bausch & Lomb shareholders approve the merger.

The transaction is subject to certain closing conditions: the approval of Bausch & Lomb’s shareholders, regulatory approvals, and the satisfaction of other customary closing conditions. There is no financing condition to consummate the transaction.  Bausch & Lomb does have a go-shop alternative where it may solicit superior proposals from third parties during the next 50 calendar days and Bausch & Lomb would only be obligated to pay a $40 million break-up fee to affiliates of Warburg Pincus.

Shares of Bausch & Lomb closed at $61.50 yesterday and its 52-week high was $62.26.  Shares are trading north of the buyout price because there are obvious hopes that this would represent a sheer giveaway and hopes of a higher bid.  For some reference, this stock traded in the $70’s in the late 1990’s and had been over $80.00 in recent years.  This may be far from over.

Jon C. Ogg
May 16, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: May 16, 2007 – 7:34 am in Consumer Goods, Drug companies, Mergers and Buy Outs, Private Equity,