Decision Diagnostics Corp (DECN)

[Leirum]

An offer one way or another is the outcome.

Carlyle is a hedge-fund and hedge-funds are not running a business they will let other people run the business, but they want to make a high return on equity. So as a rule once an acquisition is through, the cleaning – out period will start. They will sell divisions with weak results and troubled at various corners. Lifescan is not exactly a blockbuster and is involved in various lawsuits that needs exit plans or settlement plans. Without the backing from J&J they are no longer being feared for their litigation bullying. But to make Lifescan an attractive bride they would have to talk to DECN, one way or another. We should not forget that there is still an active anti-trust suit hanging over their heads and to solve this problem as well, you have to talk to DECN. If I would be Carlyle – I would make an outright offer to DECN and by doing so getting rid of all those problems and making Lifescan attractive – otherwise , there will be no bidder for Lifescan. All this under the assumption, that the acquisition of J&J’s diagnostics business will as well include Lifescan. If not, then it will be on J&J to talk to DECN – because otherwise the problem will not go away. Conclusion: Which way I see it – there will be an offer on the table for DECN.