In its ongoing quest for strategic acquisitions,
Thermo Fisher Scientific Inc.
) is not ready to easily lose its chance to takeover
). According to several media sources, Thermo Fisher managed to
bid a higher purchase price for Life Technologies compared with
the bid by the private equity consortium of $11.1 billion or $65
per share. This market rumor continued to stimulate investors'
optimism helping Life Technologies and Thermo Fisher to reach
their respective 52-week highs of $67.92 and $81.54 on
According to a Reuters report, a consortium of some private
equity firms was formed to takeover Life Technologies with a bid
close to $65 per share. Immediately after that, last Tuesday,
Thermo Fisher placed a bid at the high end of its earlier
intended range of $65−$70 per share. However, the private equity
consortium which includes Blackstone Group LP, Carlyle Group LP
and KKR & Co LP, are currently reworking to place a new bid
for Life Technologies. The consortium primarily is working on
securing the equity needed for the takeover.
According to Reuters, Thermo Fisher was preparing to buy Life
Technologies since the latter declared that it is looking for a
Over the past several years, Thermo Fisher has acquired
several entities, which have added complimentary technologies,
expanded presence in high-growth markets, generated cost and
revenue synergies, thereby increasing shareholder value. Although
the takeover of Life Technologies still remains uncertain, if it
wins, the materialization will turn out as the biggest ever deal
for Thermo Fisher since its inception in 2006. The acquisition,
if it occurs, is expected to create a solid position for Thermo
Fisher in the field of genetic research and analysis.
From the Life Technologies' point of view, even after being in
an uptrend, the company's last closing price of $66.58 lags the
high end of Thermo Fisher's bidding range, making the deal
profitable for its shareholders. As the bidding process is still
on, we expect further increase in the binding price, which will
help LIFE shareholders gain more.
Currently, both Thermo Fisher and Life Technologies carry a
Zacks Rank #3 (Hold). However, other stocks that are performing
better in the medical device sector with a Zacks Rank #1 (Strong
CYBERONICS INC (CYBX): Free Stock Analysis
GIVEN IMAGING (GIVN): Free Stock Analysis
LIFE TECHNOLOGS (LIFE): Free Stock Analysis
THERMO FISHER (TMO): Free Stock Analysis
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