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 [email protected]; he does not own securities in the companies he covers.
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