Ventana's Higher Offer for Vision Systems Not Ruled Out

Ventana Medical Systems Inc has not definitively stated that it will not make a higher offer for Australian medical technology firm Vision Systems Ltd (ASX:VSL), despite a recent agreement with United States rival Cytyc Corp. Ventana's decision not to better Cytyc's $A497 million offer was based on the current scheme of arrangement, which did not preclude a new bid after the scheme's lapse. However, Ventana's stance has left room for speculation on a potential higher offer in the future.

Key Takeaways:

• Ventana Medical Systems Inc has not ruled out making a higher offer for Vision Systems Ltd (ASX:VSL), despite a recent agreement with Cytyc Corp.
• Ventana's current scheme of arrangement does not preclude a new bid after the scheme's lapse, leaving room for speculation on a potential higher offer.
• Cytyc Corp has indicated that it will not be deterred by Ventana's plans to file patent litigation against Vision Systems in the US Federal Court.
• The patent spat between Ventana and Vision Systems has been ongoing since 2003, with Ventana appealing a separate court decision.
• Ventana's decision not to better Cytyc's $A497 million offer was based on the current scheme of arrangement, not a lack of interest in acquiring Vision Systems.
• Patrick Sullivan, chairman of Cytyc Corp, has stated that Ventana's litigation will not affect Cytyc's resolve to complete the tender offer or its timing.

Statistics:

• Vision Systems' shares sank 38 Australian cents, or 14 per cent, to a day low of $A2.31 ($US1.74) after Ventana's announcement.
• Cytyc Corp's offer of $A2.35 per share trumped Ventana's offer of $A2.13 per share.
• Ventana's scheme of arrangement is expected to lapse within the next day or so.
• The patent litigation between Ventana and Vision Systems has been ongoing since 2003.

Sources:

• Asia Pulse, Sept 19 (no online access provided)
• AAP, Sept 19 ( article text provided)