Covidien bid to buy Given Imaging in 2012

Documents show that Covidien offered $19-22 per share for the pill camera developer compared with the $30 it has now agreed to pay.

Irish healthcare company Covidien plc (NYSE: COV) bid to buy Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) last year. The price was significantly lower than the $860 million net of cash and investments that it agreed to pay earlier this month for the pill camera company.

The previous failed bid for the IDB Holding Corp. Ltd. (TASE:IDBH) unit has been revealed in documents that will be presented to the Given Imaging shareholders meeting on January 23, which will be asked to approve the deal.

Covidien was one of three companies interested in acquiring Given Imaging in 2012 when the company examined "strategic options." Covidien was willing to pay $19-22 per share as against the $30 per share it will now pay for the deal. Another company offered just $16.5 per share and while a third company was prepared to pay up to $25 per share, it then dropped out of the race to buy Given Imaging.

The papers reveal that Covidien itself also dropped out of the race to buy Given Imaging in September 2012. But the Irish company renewed interest in September 2013, when representatives of Barclays met with Covidien executives and pointed out the improvement in the Israeli companies financial results. Covidien submitted an offer of $26-28 per share which rose to the final offer a few weeks ago.

The documents also show that Given Imaging will be required to pay Covidien compensation of $36 million if it is responsible for the cancellation of the deal.

Published by Globes [online], Israel business news - - on December 26, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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