Does Beckman Bow To The Inevitable?

If multiple reports from respected sources like Wall Street Journal and Bloomberg are to believed, Beckman Coulter (NYSE:BEC) is on the block. If true, the board deserves applause for bowing out and seeking the best possible source of good returns for its shareholders. 

A Long Way From a Deal 

Beckman itself has not commented on any of the rumors, but multiple reports indicate that the company has tapped Goldman Sachs (NYSE:GS) to manage a potential sale of the company. Some reports have gone so far as to indicate that this is in direct response to the receipt of bids or indications of interest for the company - though apparently from private equity buyers and not other companies. (For more, see Potential Takeout Targets.)

 
Match Game 
The stock has shot up more than one-quarter in response to these rumors, and the market is once again playing the Chinese menu game (pick one from column A and then one from column B). It is unlikely that any of Beckman's current major rivals would want to make a bid. It would not make sense for Abbott (NYSE:ABT) to be eager to buy into the chemistry business (where Beckman is strongest). Siemens (NYSE:SI) and Roche (Nasdaq:RHHBY) would not only have potential antitrust worries to reconcile, but would also have to explain to their shareholders how that deal would complement their stated efforts to produce more growth from their testing businesses from next-gen technology.


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