Warburg Pincus’ bid for Bausch & Lomb trumped

Goldman Sachs Capital Partners, the buyout arm of the investment bank, and US buyout firm Kohlberg Kravis Roberts are reportedly partnering Advanced Medical Optics’ rival bid for optics company Bausch & Lomb.

Trade buyer Advanced Medical Optics has placed a higher bid than global buyout firm Warburg Pincus’ offer for Bausch & Lomb with an offer of around $4.3 billion (€3.2 billion).

The $75 per share offer is over $500 million higher than the buyout firm’s agreed $3.67 billion bid at $65 a share.

The offer provides $45 in cash as well as Advanced Medical Optics shares valued at $30.

Goldman Sachs Capital Partners and Kohlberg Kravis Roberts may join Advanced Medical Optics in the bid, according to US news agency Bloomberg. Goldman is already advising Advanced Medical Optics. Both private equity firms declined to comment.

“We are pleased that B&L’s board has determined that our offer is bona fide and is reasonably likely to result in a superior offer,” said Advanced Medical Optics chairman, president and chief executive Jim Mazzo.”

The approach comes as the 50-day go shop period that Bausch & Lomb originally agreed with Warburg Pincus came to an end last night. Advanced Medical Optics has permission to continue negotiating with the company now the period has ended. Advanced Medical Optics is still conducting due diligence on its rival and is not obliged to complete the transaction.

Bausch & Lomb’s share price closed up 4.89 percent at $72 per share at the close of the American markets last night.