Beckman Coulter Ends Biosite Bidding War

Shares of Beckman Coulter Inc. climbed Tuesday after the medical testing products maker exited a bidding war for Biosite Inc.

Biosite prefers Inverness Medical Innovations Inc.’s bid of $92.50 per Biosite share, but has not formally accepted it. Beckman Coulter and Inverness have been competing over the medical test maker since March, when Biosite accepted Beckman Coulter’s offer of $85 per share.

Biosite shares closed at $55.38 the day before the initial offer, and the stock is now worth more than $90.

Biosite will pay Beckman Coulter a $54 million breakup fee if it accepts the Inverness offer.

Analysts applauded Beckman Coulter’s decision. RBC Capital Markets analyst Bruce Jackson reiterated an “Outperform” rating and $75 price target for the stock.

“The proposed acquisition of Biosite was the main overhang on the stock and led investors to miss a business with improving fundamentals and an attractive valuation,” he said.

Quintin Lai of Robert W. Baird & Co. said Beckman Coulter’s core businesses are in good shape and will keep growing even without Biosite. He reiterated an “Outperform” rating and $74 price target for Beckman Coulter shares.

Inverness shares also edged up on the news, gaining 12 cents, to $41.12.

Jefferies & Co. analyst Mark Richter said the buyout will boost Inverness’ earnings starting this year, but said it was also good news that Inverness will not have to raise its bid any higher. Richter held a “Buy” rating and $55 target price on Inverness stock.

Biosite shares fell $3.01, or 3.2 percent, to $91.65.

SOURCE: BOSTON.COM