Bids, deals ... and other items of M&A news

Weekly Corporate Growth Report, May 26, 2003

Boston Scientific in Pact with EndoTex

Boston Scientific has made a second equity investment in EndoTex Interventional Systems Inc. and has agreed to acquire the entire company if certain regulatory milestones are met.

Boston Scientific has had an exclusive option to purchase EndoTex since its initial investment in July 2001. The current deal extends the option. EndoTex has also extended Boston Scientific's position as its exclusive distributor.

Bidders Line Up to Purchase Cinar

In 1991, investors in Cinar Corporation expelled the management and board of directors in a proxy fight with the intention of arranging a sale for the ailing animation company. It looks like a sale may be in the works - Cinar has announced that nine firms have signed confidentiality agreements as a step towards possibly acquiring the company. Possible buyers include Saban Capital Group, Alliance Atlantis Communications, Astro Media Inc., and the United Kingdom's Hit Entertainment.

Liberty Media has Money for Acquisitions

John C. Malone, chairman of Liberty Media Corporation, stated that the company had ready access to $10 billion in capital, which could be leveraged three times with debt, for the purpose of making corporate acquisitions. Among the businesses that Malone expressed interest in acquiring are Vivendi Universal SA's entertainment assets and the remaining 58 percent stake in shopping channel QVC Inc. that Liberty Media doesn't own.

British Newspaper Acquisition Under Scrutiny

The Gannett Company's plan to acquire 23 newspapers from Dublin-based Independent News & Media for L60 million (about $98 million) will be investigated further by anti-trust authorities. Melanie Johnson, the British competition manager, has requested the Competition Commission to further investigate the proposed acquisition.

Offer for UK Store May Start Bidding War

British department store group Debenhams PLC received at L1.54 billion (about $2.48 billion) offer from Permira, a venture capital group. News of the bid sent Debenhams share value skyrocketing and started speculations of a possible bidding war. Analysts expect the offer to draw other bidders, a situation similar the recent pattern of events at Debenhams rival Selfridges PLC. Some analysts, however, have argued that at L1.5 billion, Debenhams may be too much for many investors. Debenhams has 102 stores.