J&J, Guidant work out their differences

Drug giant Johnson & Johnson announced this morning that it has reached an agreement with Guidant which will allow the two companies to complete their merger. Under the new terms, J&J will pay $21.5 billion for the Indianapolis-based device maker. Previously J&J threatened to break off the deal completely, arguing that a series of recalls had an "adverse material impact on the company's value." The new deal values Guidant at $63.08 per share, a price closer to what J&J had been pressing for in negotiations. On Wall Street, some analysts expressed surprise that what had looked to many like a "dead deal" has "come back to life" in light of legal and regulatory issues facing Guidant. The agreement is subject to approval by Guidant shareholders.

- see this article from The New York Times

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