Johnson & Johnson in Advanced Negotiations to Acquire Guidant Corp.

Strategic Insights -

Johnson & Johnson, a leading healthcare conglomerate, is reportedly in advanced negotiations to acquire Guidant Corp. for over $24 billion. This potential deal would give Johnson & Johnson a significant foothold in the growing market for medical devices, including defibrillators and pacemakers. Although the deal may still fall apart, executives close to the talks are hopeful of reaching a final agreement within the next week.

Key Takeaways:

  • Johnson & Johnson's share price declined by 1.8% to $60.69 in premarket trading following the reports of the potential acquisition.
  • Guidant Corp.'s share price rose by 8% to $74.25 as investors speculated about the deal.
  • Toyota Motor Corp. announced deals with Sirius Satellite Radio and XM Satellite Radio Holdings Inc. to install satellite radio in various models, with Sirius' share price rising by 4.8% to $8.48 and XM's share price gaining 3.5% to $39.06.
  • Level 3 Communications Inc.'s share price advanced 7.1% to $3.75 after Comcast Corp. announced a long-term agreement with Level 3 to provide inter-city and metro dark fiber.
  • Charlotte Russe Holding Inc.'s share price dropped 7.5% to $10.09 after the retailer sharply lowered its fiscal first-quarter projections and said the general merchandise manager of its namesake apparel chain has resigned.

Statistics:

  • Johnson & Johnson's share price fell by 1.8% to $60.69 in premarket trading.
  • Guidant Corp.'s share price rose by 8% to $74.25.
  • Sirius Satellite Radio's share price rose by 4.8% to $8.48.
  • XM Satellite Radio Holdings Inc.'s share price gained 3.5% to $39.06.
  • Level 3 Communications Inc.'s share price advanced 7.1% to $3.75.
  • Charlotte Russe Holding Inc.'s share price dropped 7.5% to $10.09.

Sources:

  • "Shares of Johnson & Johnson declined in premarket trading Tuesday following reports that the health-care conglomerate is in advanced negotiations to acquire Guidant Corp. for more than $24 billion, as reported in the New York Times." (New York Times)
  • "Executives close to the talks told the Times the deal may still fall apart, but they were hoping to reach a final agreement within the next week." (New York Times)
  • "Both Sirius Satellite Radio (SIRI) and XM Satellite Radio Holdings Inc. (XMSR) shares advanced on deals with Toyota Motor Corp. (TM) to install satellite radio in various models." (Dow Jones Newswires)
  • "Comcast Corp. (CMCSK) announced a long-term agreement with Level 3 Communications Inc. (LVLT) to provide inter-city and metro dark fiber as part of Comcast's extension of its fiber footprint." (Dow Jones Newswires)
  • "Charlotte Russe Holding Inc. (CHIC) shares dropped 7.5% to $10.09 after the retailer sharply lowered its fiscal first-quarter projections and said the general merchandise manager of its namesake apparel chain has resigned." (Dow Jones Newswires)