Unlike Mineral Deposits (see separate story) which has again rejected its French suitor, despite a higher offer price, Sirtex Medical has embraced a higher offer from a Chinese suitor, rejecting the lower bid from its long time American admirer.
Sirtex Medical’s board announced it’s backing of China’s CDH Investments’ $1.9 billion bid, $33.60 a share for the medical device maker, which it thinks will help it manoeuvre into the potentially lucrative Chinese market. Until Thursday afternoon, a lower bid of $28 a share from US-based Varian Medical System’s had received Sirtex board’s backing.
The last-minute Chinese offer had surprised the board and market, coming just one day before a scheme meeting scheduled to approve May’s takeover offer by Varian.
Varian subsequently said it would not increase its takeover offer for the target liver cancer treatment provider.
CDH submitted its formal application to the Foreign Investment Review Board on May 14 and that remains an obstacle with suspicion levels about Chinese bids high in Canberra. Approval from the US Federal Trade Commission (FTC) will also be needed and the same level of concern about Chinese deals is evident in that market.
Sirtex will also said that it will pay Varian about $16 million in a break fee for walking away from the deal.
