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Inverness Likely to Buy Biosite as Bidding War Ends

Beckman Coulter Inc., a Fullerton maker of medical diagnostic kits, called off the bidding war for San Diego-based Biosite Inc. on May 15 when it announced it wouldn’t increase its offer price of $90 per share, or $1.67 billion.

The action seemingly sets up the purchase of Biosite by Inverness Medical Innovations Inc., a Waltham, Mass., medical device manufacturer, which offered $92.50 for each share of Biosite. Because Inverness already owns 4.9 percent of Biosite’s stock, the aggregate offer is valued at $1.6 billion.

Biosite has yet to formally accept the Inverness bid, but if it does it would have to pay Beckman a termination fee of $54 million.

Biosite shares closed the day at $91.71, down $2.95, or more than 3 percent, because of the news. Before the bidding war for Biosite began in March, its shares, traded on Nasdaq under BSTE, were at $55.38.

Beckman and Biosite entered into a definitive agreement in March and agreed to $85 per share. That prompted Inverness to increase the bid to $90 per share, which Beckman later matched.

Then last week, Inverness boosted its bid by $2.50 per share.

, Mike Allen

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