Millipore Soars on Reports of Takeover Bid
BILLERICA, Mass. (
) --
Millipore
(MIL)
shares rose more than 22% Monday following reports
Thermo Fisher Scientific
(TMO) - Get Report
had offered to buy the company for $6 billion.
Millipore has hired Goldman Sachs as its financial advisor after receiving the bid, a source told
Bloomberg
. A deal could be reached as early as next week.
For Thermo Fisher, the deal would help it company gain a strong foothold in the biotech drugs market. Millipore is a manufacturer of used in making biotechnology drugs.
"For Thermo, this would be instant scale in an attractive growth area within the industry, which is biotech drug manufacturing, and it would be instant scale in an area where they are currently undersized," Dan Leonard, an analyst with First Analysis Securities, told
Reuters
TheStreet Recommends
.
The analyst opined that Thermo Fisher's bid could find competition in
General Electric
(GE) - Get Report
who has a large life sciences tools business. "For some time I've thought that the two homes for Millipore could be Thermo Fisher and General Electric," Leonard said.
The companies declined to comment for
Bloomberg
and
Reuters
.
Millipore shares rose Monday by 22.4%, or $16.01, to $87.35. The shares fell 35 cents in after-hours trading.
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