Bausch & Lomb Shareholders to Vote on Warburg Bid

Sep.14.07 | About: Valeant Pharmaceuticals (VRX)

Bausch & Lomb announced Friday that four proxy advisory firms recommended shareholders vote to approve a $3.67 billion dollar bid by private-equity firm Warburg Pincus LLC. Institutional Shareholder Services, Egan-Jones Proxy Services, Glass Lewis & Co. and Proxy Governance all approved the deal; Bausch & Lomb's shareholders will vote on September 21st. The all-cash bid will pay $65/share for all of Bausch & Lomb's common stock. Rival company Advanced Medical Optics had offered $75/share, but stopped pursuing Bausch & Lomb in August citing "unrealistic hurdles" set by Bausch & Lomb. Proxy advisory firm Egan-Jones called the deal "a desirable approach in maximizing stockholder value," and added "its advantages and opportunities outweigh the risks associated to the transaction." Bausch & Lomb's stock was up 0.32% to $63.40 at the close on Friday.

Sources: Wall Street Journal, Bloomberg
Commentary: Advanced Medical Optics Tops Warburg Pincus's Bid for Bausch & LombWarburg Pincus: A Potential Private Equity Vision Care Powerhouse
Stocks/ETFs to watch: BOL, EYE. ETFs: XLV, RXL

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