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Jun 18, 2007
 |  BioCentury  |  Strategy

Anatomy of a bidding war

Anatomy of a bidding war

From a position of wanting to go it alone, Biosite's board quickly warmed to the idea of being an acquisition target. The only issue was whether a potential buyer would be willing to bridge the gap between what the board thought the company was worth and the market's valuation of below $60 a share. As chronicled in the company's SEC filings, BSTE held talks with a number of possible acquirers between January and October 2006. The molecular diagnostics play was looking for $80 a share or more and called off talks in the fall of 2006 when no buyer emerged at that price. A competitive process was reinitiated in February this year involving contact with 13 prospective buyers, of which 5 conducted due diligence and 3 showed real interest, but said they were unlikely to offer $80 a share or needed more due diligence. BSTE's patience paid off in the end, as Inverness Medical's $92.50 a share offer trumped Beckman Coulter's final bid of $90. Below: Weekly stock price for BSTE tracked against selected acquisition-related events since January 2006, as reported in the...

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