December 1, 2008 9:56AM
The Curious Deal for Mentor
By Ray Hennessey
-
Share:
Johnson & Johnson said today that it would buy Mentor Corp. for about $1 billion in cash. Folks have been watching J&J to see if it would start trolling for bargains in this market since it's sitting on a ton of cash and its stock has held up relatively well in the current bear market.
The Mentor deal, though, is a head-scratcher on two levels. For one, the premium is close to 100 percent. Mentor closed Friday at $16.15. J&J is paying $31 a share. Now, the current market has beaten down many companies to areas where boards probably think they are grossly undervalued, but even a 50% premium would probably be welcomed by Mentor's shareholders in this environment.
Secondly, one has to wonder whether Mentor is the right purchase in the current economic environment. Mentor is known for its breast implants, and that is very leveraged to good economic times. True, many patients need implants after mastectomy, but better detection of breast cancer is expected to continue to reduce the need for mastectomies over time. That means that the real growth in the implant business will come from those just wanting an augmentation, and that's going to require disposable income.
Still, it's tough to second-guess J&J, given its corporate track record. But, company executives must see something in Mentor other folks don't.
-
Share:
Retailers have rolled out the deals and are gearing up to switch on the holiday lights earlier than ever before. In an effort to jump-start holiday spending, local shopping centers and retailers such as Wal-Mart and Macy’s
You think Celebrex ? and Heparin ? are serious threats to pharm corp. capital ?
Think Vioxx ? was a problem ?
Try Risperidal.
J&J PAID a Harvard doctor to promote this drug to kids.
1.8 Million.
RUN like RUN !
I give J&J until Q3 2009 before it makes press they’re having their frozen assets sued off.
And I hope they lose.
What a crime, AND a shame.
The only thing that can balance out the meaninglessness I detect projected from FBN ?
Is probably Jesus saves or some OTHER compulsion driven mindset.
GREED
is NOT good.
DESIRE is good – Gecko was also a screenplay character.
Even desiring buddhist’s start desiring we stop desiring they start is good.
The danger in Cavuto’s fundamentalism is this.
If you tell someone who HAS cancer ? Nothing to worry about.
then ? they enter Stage II ?
it’s a LITTLE TOO LATE isn’t it.
I’d jump ship at FBN.
Anyone who can maintain a job with NewsCorp has NO conscience.
No, radio stations should NOT be turned into ROBOT stations –
NO, local newspaper should NOT be bought up and turned into ROBOT print stations.
and TV ?
I can’t tell the difference between the paid TV advertisements that come on at midnight on FBN and the real prorgamming.
“Free and Clear” How to profit on tax defaults ?
give me a break.
That yayhoo old guy’s a pedo and you know it.
He’s a predator.
SAME thinking system – sorry.
wait, no, I’m not – FBN isn’t a stand alone – it’s a MESSAGE ALREADY PRE-FAB and BAKED IN.
Same as MarketWatch now
same as WSJ
same as Barrons
SLANT slant and slant.
well now
we deserve the company we keep don’t we.
If Cavuto’s fundamentalism that there WAS no recession, IS no recession ?
was wrong ?
my god
What ELSE can I rely on this guy for ?
He CHERRY picked people to come on and promote that ‘No recession here’ message.
ALL speculation put forth as if FACT.
Hey, I’m not the one stuck with the problem of having the integrity of my reality undermined by poor thinking systems.
That’d really blow too.
J & J may see some serious legal backlash though.
Remember that Harvard doctor in the news last week ? front page news.google.com ?
the guy who took 1.8 Million from J & J to promote the anti-psychotic ‘risperadal’ spelling there – ?
J&J’s looking at billions in losses.
Those kids are messed up for life likely.