Institutional Shareholder Services (ISS), an independent proxy advisory firm, has recommended that shareholders of Boston Scientific and Guidant vote in favor of the proposed combination of their two companies at each company's special meeting of shareholders, to be held on March 31.
In its report, ISS noted the "compelling strategic rationale" for the combination of Boston Scientific and Guidant. "The acquisition of GDT will allow BSX to diversify its product offerings, adding defibrillators and pacemakers, and should ameliorate some of the concerns regarding future growth," stated the report.
"We look forward to receiving support from both companies' shareholders at the special meetings on March 31, and we expect to close the transaction during the first week of April," said Jim Tobin, Boston Scientific president and CEO.
On Jan. 25, Boston Scientific and Guidant announced that they had entered into a merger agreement, under which Boston Scientific will acquire all the outstanding shares of Guidant for a combination of cash and stock worth $80 per Guidant share, or approximately $27 billion in aggregate.