Varian Medical Systems Inc. will not submit a counterbid to acquire Sirtex Medical Ltd. which has received an unsolicited takeover offer from CDH Investments, a China-based private equity firm.
The Palo Alto, Calif.-based company believes that its offer to buy Australia's Sirtex Medical for A$28 per share in cash, or a total value of about A$1.59 billion, is superior to CDH's competing bid.
CDH is offering to acquire Sirtex for A$33.60 per share.
Varian said its offer has been unanimously approved by the two companies' board, with fully committed financing and has received cleared from all necessary regulatory authorities. The deal is ready to close, pending approval of Sirtex stockholders and satisfaction of other customary closing conditions, Varian added.
The company noted that, compared to its offer, CDH's unsolicited bid has complex financing structure, may receive shareholder approval as late as March 2019 and has not secured any regulatory or antitrust approvals yet.
Sirtex Medical's board has yet to form a recommendation on CDH's proposal and earlier said in a news release that it believes the existing deal with Varian is in the best interest of its shareholders.
