Replies to post #201002 on Biotech Values

[DewDiligence]

ABT-STJ: The nominal deal value is $30.7B, including the assumption of $5.7B of net debt on STJ’s balance sheet.

[DewDiligence]

Slide set for ABT-STJ deal:

http://phx.corporate-ir.net/External.File?t=1&item=VHlwZT0yfFBhcmVudElEPTUyMjYwMTV8Q2hpbGRJRD02MzEyNDU=

[DewDiligence]

(ABT)—Muddy Waters says STJ devices at-risk from cyberhacking:

http://www.muddywatersresearch.com/research/stj/mw-is-short-stj/

ABT, who is planning to acquire STJ for $30.7B in cash and stock (#msg-122251293), is down only 0.2% today, so investors evidently think the MW write-up is hyperbole.

[DewDiligence]

99% of STJ shareholders approve merger with ABT:

http://finance.yahoo.com/news/st-jude-medical-shareholders-approve-201100415.html

The 99% figure is not as impressive as it might seem; in these kinds of situations, shareholders who don’t like the deal at the time of the announcement generally sell their shares and are replaced by shareholders who do.

[DewDiligence]

FTC OKs ABT-STJ merger—subject to two divestitures:

https://www.ftc.gov/news-events/press-releases/2016/12/ftc-puts-conditions-abbott-laboratories-proposed-25-billion

The proposed consent order requires the parties to divest to Tokyo-based medical device maker Terumo Corporation all rights and assets related to St. Jude’s vascular closure device business and Abbott’s steerable sheath business. Terumo does not currently sell any vascular closure devices or steerable sheaths but has sold related products and medical devices in the U.S. market for more than 30 years, and possesses the industry experience and reputation necessary to replace competition, according to the FTC. The order requires both companies to assist Terumo with establishing its manufacturing capabilities.

Reminder: STJ is the company wants to acquire; ALR is the company ABT does not want to acquire.