Advanced Medical Optics has decided to withdraw
its bid for fellow vision-device firm Bausch & Lomb, the Los Angeles Times
reports. This clears the way for Bausch & Lomb to be sold to a subsidiary of private equity firm Warburg Pincus.
AMO's bid was higher by about $10 per share, but B&L's board was skeptical that AMO shareholders would approve it. AMO's largest shareholder, ValueAct Capital, came out against it. The B&L boardÂ asked AMO for proof that its shareholders would back the bid. AMO decided to withdraw from the bidding instead.
But not before a parting shot. "If, in the future, you decide to run a process that is designed to deliver value to your shareholders, please let us know," AMO CEO James Mazzo wrote to the B&L board. Ouch!