RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:TODAY’S NUMBERSCG has Baxter over the barrel because they desperately need the cash from the sale of Vantive and it would be a disaster for Baxter if CG decided to walk away from the deal. Baxter has billions of dollars in Bonds maturing and the refinance interest rate will be at least triple the rate of what the maturing bonds had. The CG walk away threat to get Baxter to lower their price is what I am referring to as thumbscrews.
CG/Vantive is already 100% locked into the PMX distribution deal, with its sales quotas and marketing commitments. CG has no leverage over Spectral, plus, PMX is the only high margin product that CG can turn to in order to improve their overall margins and valuation metrics. Nevermind the fact that CG also needs the world wide rights to EAA in order to get Toray to select them as their worldwide distribution partner for PMX.
So I'm not really understanding what leverage you think CG will impose on Spectral during negotiations for the NA rights to PMX and the worldwide rights to EAA. Please explain you logic Simon.