People familiar with the issue told Dow Jones that Baxter International Inc. is in advanced discussions to purchase Hill Rom Holdings Inc. for roughly $10 billion.Medical Equipment Company is valued at about $150 per share according to Dow Jones. As of Friday’s closing price of $132.90, it is a 13 percent increase.
This week’s transaction is anticipated to be finalized by mid-week, although the discussions might still break apart, according to the report. Media reported previously that Hill Rom had rejected a $9.6 billion acquisition bid from Baxter. Sources say Hill Rom considered Baxter’s offer of $144 per share to be too low. The individuals stated that Baxter was anticipated to return with a larger proposal.
Shares of Hill Rom have soared 36 percent this year, more than double those of the health care sector’s S&P 500 index. There are roughly 21 times expected earnings on each of these equities’ current market prices.After receiving an email from Baxter, the company indicated it wouldn’t comment on rumors or suppositions. There was no quick response from Hill Rom outside of normal work hours.