Bloomberg News

Wallenbergs Won't Trim Gambro Bid on Contract Loss

May 31, 2006

Sweden's billionaire Wallenberg family won't trim its 39.2 billion kronor ($5.4 billion) bid for Gambro AB, which may lose a supply contract with a U.S. partner.

Dialysis provider DaVita Inc. (DVA:US) yesterday indicated it will end an agreement with Gambro, the world's largest maker of dialysis products, because U.S. regulators banned imports of some of the Swedish company's monitors, Gambro said yesterday.

The Wallenbergs are buying the 80 percent of Stockholm-based Gambro that they didn't already own. Indap AB, created by the Wallenbergs to make the offer, raised its bid by 3.6 percent on May 15. Gambro shareholders had until 5 p.m. today to accept the offer.

``Based on the information currently available to Indap, its offer to the shareholders in Gambro is still valid on unchanged terms and conditions,'' the company said in a statement released by Indap's parent company, Investor AB. (INVEA) The company is expected to announce the results of the takeover in the next few days.

Gambro's shares climbed 2.5 kronor, or 2.3 percent, to close at 113 kronor in Stockholm. They've risen 32 percent this year.

The FDA banned imports of Gambro's Prisma, Prismaflex and Phoenix dialysis monitors in January after the agency found manufacturing flaws at a Gambro plant in Medolla, Italy.

Dialysis is a procedure that uses a machine to sift people's blood after their kidneys fail.

To contact the reporter on this story: Alex Kuli in Budapest at akuli@bloomberg.net.

To contact the editor responsible for this story: Chris Elser in London at celser@bloomberg.net.


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Companies Mentioned

  • DVA
    (DaVita HealthCare Partners Inc)
    • $74.57 USD
    • 0.14
    • 0.19%
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