Boston Scientific may offer much more to acquire Medinol than it is willing to pay in compensation and royalties.
The “Yediot Ahronot” Hebrew daily reports that negotiations to settle the bitter dispute between Israel stent manufacturer Medinol, owned by Kobi and Judith Richter, and US company Boston Scientific (NYSE: BSX), Medinol’s former partner, have reached an advanced stage. The parties are attempting to reach a compromise that will include a large compensation payment to Medinol from Boston Scientific in exchange for the withdrawal of all of Medinol’s claims against Boston Scientific. Medinol is suing Boston Scientific in seven different countries.
The parties have been negotiating through various intermediaries for several weeks. Boston Scientific has offered Medinol $600 million in compensation on its own initiative. Sources said that the compromise settlement could reach $1.8 billion. Boston Scientific offered more than $2 billion for the acquisition of Medinol in 2000.
Informed sources asserted that Boston Scientific might eventually offer much more to acquire Medinol than it would pay in compensation and royalties, in order to obtain ownership of Medinol’s patents, and in order to avoid Medinol’s lawsuits filed in Europe.
Boston Scientific stopped selling Medinol’s stents three years ago, when litigation between the companies began.
Published by Globes [online], Israel business news - www.globes.co.il - on March 17, 2005