Although the strategic rationale for combining Boston Scientific and Guidant appears compelling, we have lingering concerns. |
Don't count BSX out yet. We expect BSX to continue to pursue GDT by potentially modifying or increasing its $72/share offer. |
In our view, Abbott is the clear winner in this deal. |
We believe that Boston Scientific can raise its offer to $78 a share and still maintain an investment-grade credit rating. |
We suspect the new Boston Scientific offer was developed with input from the Guidant board, so it's likely that the Guidant board will declare it superior to J&J's latest offer. |