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AMO makes offer for Bausch & Lomb AMO makes offer for Bausch & Lomb
(about 7 hours later)
Advanced Medical Optics (AMO) has made an offer to buy its US eye care rival Bausch & Lomb for $4.23bn (£2.1bn).Advanced Medical Optics (AMO) has made an offer to buy its US eye care rival Bausch & Lomb for $4.23bn (£2.1bn).
The informal approach trumps May's $3.67bn formal bid from US private equity group Warburg Pincus, which was accepted by Bausch's board.The informal approach trumps May's $3.67bn formal bid from US private equity group Warburg Pincus, which was accepted by Bausch's board.
Bausch, whose agreement with Warburg allowed it to explore other bids for 50 days, said AMO's approach was likely to lead to a superior deal.Bausch, whose agreement with Warburg allowed it to explore other bids for 50 days, said AMO's approach was likely to lead to a superior deal.
While Warburg's offer is all-cash, AMO's involves both cash and shares.While Warburg's offer is all-cash, AMO's involves both cash and shares.
AMO is offering $75 per share - $45 in cash and $30 in stock.AMO is offering $75 per share - $45 in cash and $30 in stock.
Termination feeTermination fee
Bausch said it planned "to engage in further discussions" with AMO, but cautioned that "there can be no assurances as to whether the AMO proposal will ultimately result in a transaction".Bausch said it planned "to engage in further discussions" with AMO, but cautioned that "there can be no assurances as to whether the AMO proposal will ultimately result in a transaction".
If Bausch does accept AMO's offer, it will have to pay Warburg a $40m termination fee.If Bausch does accept AMO's offer, it will have to pay Warburg a $40m termination fee.
AMO is smaller than Bausch, with a market capitalisation of $2.1bn, compared with its rival's $3.7bn.AMO is smaller than Bausch, with a market capitalisation of $2.1bn, compared with its rival's $3.7bn.
In May, Bausch was forced to recall its Complete MoisturePlus contact lens solutions after it was found to increase the risk of eye infections among users. In May, AMO was forced to recall its Complete MoisturePlus contact lens solutions after it was found to increase the risk of eye infections among users.