Hill-Rom Rejects $9.6 Billion Takeover Bid From Baxter
(Bloomberg) -- Medical equipment maker Hill-Rom Holdings Inc. has rejected a $9.6 billion takeover offer from Baxter International Inc., people with knowledge of the matter said.
Hill-Rom sees Baxter’s proposal of about $144 per share as too low, the people said, asking not to be identified because the information is private. Considerations are ongoing, and Baxter could return with a higher bid, the people said.
Shares of Hill-Rom jumped as much as 15% in U.S. trading Wednesday, the biggest intraday gain since March 2020, to hit a record high after Bloomberg News reported the takeover bid. The stock was up 8.7% to $134.54 at 1:18 p.m. in New York.
Representatives for Hill-Rom and Deerfield, Illinois-based Baxter declined to comment.
Mergers and acquisitions involving health-care companies have nearly tripled this year to $353 billion, data compiled by Bloomberg show. Hill-Rom, based in Chicago, makes a range of hospital equipment including stretchers, patient monitors, operating tables and electrocardiographs, according to its website.
Medical device and supply companies have been consolidating as they seek to sell a wider range of products to their hospital clients. Large deals such as Medtronic Plc’s $43 billion acquisition of Covidien Plc and the $25 billion purchase of St. Jude Medical Inc. by Abbott Laboratories have prompted other firms to pursue scale through acquisitions.
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