AMO pull out of B&L bid

Advanced Medical Optics (AMO) has withdrawn its bid to buy Bausch & Lomb (B&L), according to a letter issued to B&L by AMO president, James V. Mazzo. The decision was made after B&L refused to grant more time to AMO to prove that it could gain the support needed from shareholders.

B&L had been trying to decide between AMO's cash and stock offer and a $65 per share all-cash offer made by the private equity firm Warburg Pincus in May. B&L initially accepted the latter but was allowed to solicit better offers during a 50-day "go shop" period. AMO made its offer on 5th July, the last day of the go-shop period.

On 24th July, B&L told AMO that it preferred Warburg Pincus' offer and gave the company until 3rd August to provide concrete, credible evidence of shareholder approval. AMO responded that it needed several weeks to convince its shareholders of the deal's potential value, however, this extension was not granted by B&L, hence AMO's decision to withdraw.