Bear Stearns assessed Medinol at $3 billion on Boston's behalf

Boston Scientific CFO called the unofficial report nonsense, says chief exec Tobin
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NATICK - Working on behalf of Boston Scientific (NYSE:BSX), a Bear Stearns investment bank analyst assessed Jerusalemite medical-technology company at about $3 billion, has learned.

The assessment was made on behalf of Boston, when it was negotiating to take over Medinol from its founders and majority shareholders, Kobi and Judith Richter.

Boston chief executive Jim Tobin said the Bear Stearns study had not been official. The analyst, Alan Schwartz, did not act as Boston's banker, Tobin said. He had advised the company on a friendly basis.

Tobin added that Boston's CFO, Larry Best, had reviewed the report and said it was nonsense.

Boston's chairman, Pete Nicholas, said the company had offered to buy the Richter's 64% interest in Medinol according to a company value of $1.7 billion, of which half a billion would be contingent on the achievement of milestones.

Nicholas said Kobi Richter rejected the offer out of pride. The offer was made in writing and will be submitted to the courts, Nicholas added.

Nicholas also said that when the negotiations began, Richter presented Medinol as being worth $11 billion, and said he'd settle for $8 billion.

Meanwhile, the company's value is like an ice-cream cone ¿ melting with time, Tobin said. He also noted that Boston has managed to bridge most of its technological gap with the Israeli company, which makes stents used to prop open arteries after cardiac surgery.

Nicholas confirmed that Boston has received $80 million in dividends from Medinol.