Boston Scientific ups offer for Guidant

New York, Jan. 12 - Boston Scientific Corp. said it increased its definitive offer for Guidant Corp. to $73.00 per share.

Boston Scientific also said that the improved terms will expire at 4 p.m. ET on Jan. 13 unless Guidant's board declares it superior to the offer from Johnson & Johnson, valued at $67.92 per share using Johnson & Johnson's closing stock price on Jan. 12.

The new offer from Boston Scientific is $36.50 in cash and $36.50 in stock, subject to a collar. There is no financing condition.

The Natick, Mass., company also said that in response to anti-trust concerns raised by Guidant it has agreed to divest any overlapping assets, if required.

If closing is not completed by March 31, the $73 per share price will increase by $0.012 in cash per day from April 1 to the date of closing. The additional amount is equivalent to a 6% interest rate.

"Our amended offer addresses all of the outstanding issues raised by Guidant's Board," said Pete Nicholas, chairman of Boston Scientific, in a news release.

"We have increased the value of our offer, satisfied any perceived antitrust concerns and provided shareholders increased certainty of value by agreeing to pay interest on the $73 share price if the transaction is not closed by the end of the first quarter.

"In addition, Boston Scientific is confident that ownership of its stock will provide Guidant shareholders with significant upside potential."

Boston Scientific was previously offering $72.00 per share, split equally between cash and stock.

Boston Scientific is a Natick, Mass., maker of medical devices, including heart devices.

Guidant, based in Indianapolis, develops therapies for cardiac and vascular disease.

New Brunswick, N.J.-based Johnson & Johnson is a manufacturer and marketer of health care products.

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