DADE Buyout Fairly Priced

Zacks senior medical appliances analyst Tom Park has recently analyzed the performance of medical instrument manufacturer Dade Behring Holdings, Inc. (DADE) and recommended a Hold for the shares ahead of its buyout by Siemens (SI - Analyst Report):

"Dade Behring Holdings, Inc. entered into a definitive agreement to be acquired by Siemens. The deal is expected to close in the fourth quarter 2007. After achieving U.S. anti-trust clearance early, Siemens expects to receive European merger control clearance shortly.

"While Siemens previously announced that it expected to close the transaction in the first quarter of calendar year 2008, it now expects to close the transaction during the fourth quarter of calendar year 2007. Following completion of the tender offer, any remaining shares of Dade Behring will be acquired in a merger at the same price. The transaction has a value of approximately $7 billion.

"DADE continues to generate solid growth in the core chemistry and hemostasis businesses. Our target price is equal to the cash tender offer of $77.00 per share. As a result of the acquisition deal that is expected to close in the fourth quarter 2007, we expect limited price appreciation in the stock. The stock is already trading near the cash tender offer price. Thus, our target price is also equal to this cash tender offer of $77.00 per share."

Read the full analyst report on DADE.

Read the full analyst report on SI.