$25 billion medical deal

Medical device maker

is proposing to acquire all the outstanding shares of Guidant Corporation for a combination of cash and stock in a deal worth $25 billion.

Boston Scientific’s $72 per share proposal represents a premium of approximately 14% over a former $63.43 per share offer for the company from Johnson & Johnson.

Assuming that Boston Scientific and Guidant enter into a definitive agreement by the end of the year, it is anticipated that the proposed transaction will close in the first quarter of 2006.

Boston Scientific has received commitment letters from Bank of America and Merrill Lynch who will finance the transaction.

Boston Scientific employs around 16,000 people and had a revenue of $5.6 billion in 2004.