ABIOMED pulls bid for Thermo Cardiosystems
NEW YORK, Feb 1 (Reuters) - Heart device maker ABIOMED Inc.
(NasdaqNM:ABMD - news) said on Thursday it withdrew its offer to
acquire Thermo Cardiosystems Inc. (AMEX:TCA - news), which already has a merger agreement with
Thoratec Laboratories Corp. (NasdaqNM:THOR - news).
ABIOMED said in a letter to Thermo Cardiosystems, which specializes in left ventricular devices, that it
understood that Thermo ``entered into contractual agreements that limited your ability to speak with us.''
ABIOMED, which on Tuesday received approval from U.S. regulators to test its implantable artificial heart,
had originally offered $10 in stock and $1.50 in cash for each Thermo share. It then amended the bid to offer
$9 in stock and $2.50 in cash per Thermo share.
Under the terms of the Thoratec deal, each Thermo share would be exchanged for 0.835 shares of newly
issued Thoratec stock, giving Thermo shareholders about $9.60 in stock per Thermo share based on
Thoratec's current trading price.
The deal was valued at about $571.1 million when it was offered in October, and Thermo's board voted in
favor of that proposal.
``Given that it appears to be your wish to continue forward with your current arrangement, we feel that it is
appropriate for us to withdraw our offers at this time,'' ABIOMED said in the letter.
Shares of Thermo Cardiosystems fell 54 cents, or 5.3 percent, to $9.65 in midday trading on the American
Stock Exchange. Meanwhile, shares of ABIOMED rose $1-7/16 to $24 on the Nasdaq, while shares of
Thoratec were down 7/16 at $11-3/4.
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