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Thermo Fisher Makes Competing Bid for Life Technologies

Tuesday, 09 Apr 2013 08:52 PM

Thermo Fisher Scientific Inc. made a binding offer for Life Technologies Corp. on Tuesday as private equity firms raced to finalize a consortium to take the genetic testing equipment maker private, several people familiar with the matter said.

Thermo Fisher met a bid deadline on Tuesday but private equity firms working on a joint bid missed it and were working late into the evening to secure the equity required to support an offer, the people said.

Blackstone Group LP, Carlyle Group LP and Singapore's state investor Temasek Holdings were in talks with KKR & Co. LP about securing the required equity and finalizing a buyout consortium, the people said.

Life Technologies would likely accept an offer past the bid deadline to keep the process competitive, the people added.

Thermo Fisher, the world's largest maker of laboratory equipment, is bidding more than $65 per each Life Tech share, two of the people said. While the exact price could not be learned, Thermo had been considering a bid of $65 to $70 per share, sources said last week.

The private equity group would likely bid close to $65 per share, the people said.

Shares of Life Tech ended up 1.3 percent at $66.19 on Tuesday, giving it a market value of $11.3 billion.

The people asked not to be named because details of the auction are not public. Thermo Fisher, KKR, Blackstone and Carlyle declined to comment while Life Technologies and Temasek did not respond to a request for comment.

Carlsbad, California-based Life Tech, which has hired advisers to explore a sale, had also attracted interest from Danaher Corp and Roche Holdings AG, people familiar with the matter told Reuters previously.

While their position could not be confirmed, one of the people said that neither of these two companies had carried out the procedural work necessary ahead of the bid deadline that would have allowed them to make offers. Danaher and Roche did not respond to requests for comment.

If Thermo Fisher wins the auction, it would boost its presence in scientific research, genetic analysis and applied sciences and make it a major player in the genetic sequencing market. It would also create a healthcare technology giant with annual revenues of over $16 billion and some 50,000 employees.

At a range of $65 to $70 per share for Life Tech, Thermo Fisher believes the deal would add to its earnings, people familiar with the matter have previously told Reuters.

© 2017 Thomson/Reuters. All rights reserved.

 
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Thermo Fisher Scientific Inc. made a binding offer for Life Technologies Corp. on Tuesday as private equity firms raced to finalize a consortium to take the genetic testing equipment maker private, several people familiar with the matter said.
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2013-52-09
Tuesday, 09 Apr 2013 08:52 PM
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