RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:old enough to rememberGreat response. Thanks.
It's hard not to champ at the bit, but it seems that before 6 months is up we should at least know which way Baxter is going to go in terms of Vantive spinoff or private equity sale.
mercedesman wrote: I don't think a buyout can happen unless or until Baxter has the dough, or until Private Equity decides it makes sense to make a better offer to Baxter which results in more cash than Baxter can raise itself with an IPO.
If an IPO of Vantive, then that generates cash to pay down debt and or make acquisitions.
If straight sale of Kidney division ,( perhaps to a newly created entity called Vantive) then Baxter pays down its debt. In a hybrid solution, PE and Baxter could own varying portions of Vantive.
It sounds as if distribution rights ( for PMX) will go to Vantive no matter who owns it or whether or not it is a public entity.
The highly lucrative lions share of future profits ( ie Spectral's portion) may be up for grabs once the Vantive plans are finalized. Or maybe they wait 6-8 more months for the Trial to be finished. Or maybe in the long term, Spectral is content to print money for very little effort going foward... but I like to think lots of companies are willing to pay for lucrative long term cash streams.
This is a 3-D chess match. Those are just some of the possibilities I see, but they seem to depend on Baxter making up their minds on how best to dispose of the kidney care division.
Im sure that some of the armchair quarterbacks here either have better ideas or are content to sit back a criticize the fact that it's taking too long
MM