AMO makes a move on B&L

August 23, 2007

Advanced Medical Optics (AMO) has submitted a proposal to acquire Bausch & Lomb for $75 per share in cash and AMO stock.

Advanced Medical Optics (AMO) has submitted a proposal to acquire Bausch & Lomb for $75 per share in cash and AMO stock.

Bausch & Lomb has already entered into a merger agreement process with the private equity firm Warburg Pincus, valued at $4.5 billion. Under the terms of the agreement, Bausch & Lomb was permitted a 50 day period to solicit superior proposals. However, if a better agreement was reached, they are obligated to pay a break-up fee of $40 million to Warburg Pincus.

The AMO proposal values Bausch & Lomb at approximately $4.3 billion in equity value.

In a letter issued on 24 July, however, Bausch & Lomb said it was likely to reject AMO's takeover bid unless AMO could provide evidence that its shareholders will approve the deal.