Mentor Plots Cosmetic Change
Ironically, Mentor's offer for Medicis makes Medicis' offer for Inamed look even better. In March, the Medicis bid was valued at $2.8 billion, or $75 a share, in cash and stock.
After Allergan entered the fray last week, Medicis' stock fell, and the total value of its deal dropped to $69 a share. Now, thanks to Mentor, the Medicis offer is worth just under $76 a share.
That's still not as good as the Allergan offer for Inamed, which is valued at $3.2 billion, or $84 a share in either cash or stock.
Trading in Allergan and Inamed was relatively calm. Allergan, of Irvine, Calif., was down $1.04, or 1%, to $99.21. Inamed, like Mentor based in Santa Barbara, Calif., was off 16 cents to $83.15.
The Latest PlayerSome analysts said the Mentor bid was a nice try, but others say it was a doomed proposal. This was a "dead-on-arrival offer," says Amit Hazan, of SunTrust Robinson Humphrey, in a research note. "We are puzzled by both the structure and the timing. The all-stock offer poorly missed the mark." Hazan cut his rating on Mentor to neutral from buy. "We are now uncomfortable with this management team's ability to use the ensuing proceeds
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