Commentary From the Mile High City

"Star of the conservative blogosphere" Denver Post

"The Rocky Mountain Alliance offers the best of what the blogosphere has to offer." -David Harsanyi, Denver Post
Joshua Sharf

 notify list
to receive email when this site is updated, enter your email address:
 recent posts
24 (2 entries)
Anglosphere (1 entries)
Biking (1 entries)
Blogging (35 entries)
Business (173 entries)
CFA (3 entries)
China (5 entries)
Climate Change (3 entries)
Colorado (20 entries)
Denver (12 entries)
Design (4 entries)
Economics (39 entries)
Education (6 entries)
Electoral College (1 entries)
Environmentalism (3 entries)
Europe (0 entries)
Flying (2 entries)
Foreign Affairs (1 entries)
General (89 entries)
Gun Control (2 entries)
Health Care (7 entries)
Higher Ed (7 entries)
History (8 entries)
Home Improvement (1 entries)
Illegal Immigration (35 entries)
Internet (4 entries)
Israel (57 entries)
Jewish (49 entries)
Judicial Nominations (12 entries)
Katrina (0 entries)
Literature (1 entries)
Media (37 entries)
Music (3 entries)
Photoblogging (32 entries)
Politics (152 entries)
Porkbusters (5 entries)
Radio (16 entries)
Religion (1 entries)
Reviews (8 entries)
Robed Masters (4 entries)
Science (1 entries)
Sports (9 entries)
Taxes (2 entries)
Transportation (6 entries)
Unions (1 entries)
War on Terror (180 entries)
my other blogs
Three-Letter Monte

Rocky Mtn. Alliance
Best Destiny
Daily Blogster
Geezerville USA
Mount Virtus
Night Twister
Rocky Mountain Right
Slapstick Politics
The New Conservative
Thinking Right
View from a Height

other blogs
One Big Swede
American Thinker
Meryl Yourish
NRO Corner
Little Green Footballs
No Left Turns
A Constrained Vision

business blogs
Accidental Verbosity
Assymetrical Information
Carnival of the Capitalists
Cold Springs Shops
Commodity Trader
Coyote Blog
Different River
Everyone's Illusion
Fast Company Blog
Financial Rounds
Freakonomics Blog
Management Craft
Trader Mike
Carnival of the Capitalists Submission

business data
Inst. Supply Mgmt.
St. Louis Fed Economic Data
Nat'l Bureau of Economic Research
Economic Calendar
Stock Charts

colorado blogs
Pirate Ballerina
Pagan Capitalist
Boker Tov, Boulder
Colorado Pols
Jeff Sherman

<-?Colorado BlogRing#->

sites, not blogs
Thinking Rock Press
 help israel
Israel Travel Ministry
Friends of the IDF
Volunteers for Israel
Magen David Adom
 1939 World's Fair
1939: The Lost World of the Fair
The New York World's Fair: 1939-1940
The Last Great Fair by Jeffrey Hart
Iconography of Hope (U.Va.)
Images From the '39 Fair
Tour the 1939 New York Fair
Powered by
Movable Type 3.2

« Shadegg for Majority Leader | Main | Legal Clinic »

Deals From Hell Just Keep Coming

Am I the only one who sees a replay of the Qwest-Verizon-MCI struggle in the current Boston Scientific-J&J-Guidant bidding war? J&J can always win this thing if it wants to - it just may not want to. And BSX is now offering substantially more than its own value, on its way to wrecking the combined balance sheet of the two companies.

Then there's this:

Some of Guidant's largest shareholders have protested what they believe is an unfair preference for J&J at the Guidant board level, despite what they regard as J&J's inferior offers. This suggests that a hostile bid might find backers among these groups.

That should also sound familiar.

Likewise, some are arguing that J&J needs Guidant because it has few other growth opportunities. I'm not certain that a profitable and growing company worth $180 billion needs any company worth about $25B.

There are some differences. For instance, Qwest had no outside help. In this case, Abbott Labs seems willing to fund BSX's escalating offers - at least to some extent - by agreeing to pay more for certain overlapping bits of Guidant that can't keep. But there are some limits, here, too. Abbott is only valued at about $65B, and certainly won't be looking to blow its entire roll of cash just block J&J. This isn't the Persian Empire bankrolling the Spartans.

I suppose there's that argument that something is worth what you can get for it, but people value companies for a reason, and J&J had excellent reasons for pushing down Guidant's price. Using the pre-deal list from Deals From Hell, I'd be a little worried about winning if I were a BSX shareholder. It's a bidding war for a public company, one that BSX has valued above itself, and which the board is clearly hoping will save the company. There are complex regulatory issues to be negotiated. And there will almost certainly be expensive buyouts and severance for senior- and middle-management. Speaking of management, with one exception there's very little management investment in BSX.

If J&J wins, they may be overpaying.

If BSX wins, they may soon be up for sale.

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)


Power, Faith, and Fantasy

Six Days of War

An Army of Davids

Learning to Read Midrash

Size Matters

Deals From Hell

A War Like No Other


A Civil War

Supreme Command

The (Mis)Behavior of Markets

The Wisdom of Crowds

Inventing Money

When Genius Failed

Blink: The Power of Thinking Without Thinking

Back in Action : An American Soldier's Story of Courage, Faith and Fortitude

How Would You Move Mt. Fuji?

Good to Great

Built to Last

Financial Fine Print

The Day the Universe Changed


The Multiple Identities of the Middle-East

The Case for Democracy

A Better War: The Unexamined Victories and Final Tragedy of America's Last Years in Vietnam

The Italians

Zakhor: Jewish History and Jewish Memory

Beyond the Verse: Talmudic Readings and Lectures

Reading Levinas/Reading Talmud