Tao Levy
Tao Levy
hospitals might power push
It might give hospitals some more power to push back on prices.
board boston certainly company few force gamble johnson pay recall risky scientific somewhat strategy support surprised taking weeks worth
We are somewhat surprised to see Guidant's board support Johnson & Johnson's offer. Recall that this is the same company that thought Guidant was only worth $63 a few weeks ago. Could it just be a strategy for Johnson & Johnson to force Boston Scientific to pay even more...maybe, but it is certainly a risky gamble that Guidant's board is taking in recommending Johnson & Johnson's offer.
debt expect increase management offer quickly
We would expect BSX to quickly come back with a new bid, but importantly, we do not expect management to increase its debt or offer more equity.