Thoughts on lawyers, dealmaking, M&A and other quirks of corporate life.
Wednesday, January 25, 2006
No Deal Fever
Good to see that J&J didn't succumb to "deal fever" and chase the $27B proposal made by BSX. Still, as I posted last week, J&J could have had Guidant for several billion dollars less had they not overestimated their leverage in exercising the MAC clause. Perversely, Guidant's problems post-signing - which precipiated J&J exercise of the MAC clause - ended up creating $2B in shareholder value. It's a strange world.