| BUSINESSWEEK ONLINE : OCTOBER 25, 1999 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR -- INSIDE WALL STREET
Is Tyco After Bard? Shares of Big Board-listed C.R. Bard (BCR) were flying high in the spring, when rumors swirled that Baxter International was in pursuit of Bard, which makes a wide range of disposable therapeutic and diagnostic devices used by hospitals, doctors, and nursing homes. The stock had climbed to nearly 60. It has since dropped as the takeover rumors fizzled. That wasn't the first time that Bard's name was bandied about as a target. Last year, there was scuttlebutt that it would be acquired by the hungry Tyco International (TYC), a conglomerate whose four core operations include medical supplies. Bard's shares, now at 52, have been edging up of late, from 45 in late September. The reason: Tyco talk is back. Some money pros insist that Tyco is ardently wooing Bard--again. They are betting that Tyco will end up buying the company. A senior Tyco executive told BUSINESS WEEK that Tyco did indeed hold talks with Bard last year. ''We are still very interested,'' says this Tyco official. But he was unable to confirm any deal. ''Let's just say that Bard is only one of the medical companies that we are interested in. But yes, the fit would be great,'' he adds. Are talks going on? He wouldn't say. Tyco's stock fell 6 3/8, to 97, on Oct. 13 after an analyst suggested that the company's earnings may have been inflated. Tyco denied the allegation. Analyst Joanne Wuensch of ING Baring, who rates the stock a ''buy,'' says that, based on 24 times her 2000 earnings estimate of $2.63 a share, it is worth 63. She figures Bard will earn $2.28 in 1999 on sales of $1.1 billion. Tyco Chief Executive Dennis Kozlowski says that he did look at Bard ''with interest'' last year. Bard spokesman Earle Parker declined comment as a matter of policy. By GENE G. MARCIAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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