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Inverness Medical Innovations Sweetens Bidding for Biosite

The bidding battle for Biosite Inc., the San Diego medical diagnostic kit maker, continued on May 9 when Inverness Medical Innovations sweetened an earlier bid for the company by $2.50 per share for a total of $92.50 per share.

Biosite was originally approached by Beckman Coulter Inc., another medical device manufacturer based in Fullerton, to buy the company for $85 per share or about $1.55 billion on March 24.

Shortly afterwards in April, Inverness extended an offer to Biosite at $90 per share or $1.6 billion, which Biosite’s board deemed a superior bid.

Then on May 2, as the deadline on Beckman’s offer was set to expire, Beckman matched the $90 per share price of Inverness. The aggregate offer was valued at $1.67 billion, but also would preclude Biosite from paying a $50 million termination fee.

To help finance its proposed pricey acquisition, Inverness said it has entered agreements to sell $132.5 million in convertible senior notes due 2017 to buyers in a private offering to institutional investors.

Shares of Biosite, traded on Nasdaq, gained 64 cents and were trading at $94.64 on May 10. Before the bidding war began, shares of BSTE were at $55.38.

Waltham, Mass.-based Inverness, whose shares are traded on the American Stock Exchange, were at $40.20, down 3 cents.

Beckman Coulter’s shares were at $64.50, up 4 cents, on the New York Stock Exchange on the same day.

, Mike Allen

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