ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Thursday, December 28, 1995 TAG: 9512280061
SECTION: BUSINESS PAGE: B-9 EDITION: METRO
DATELINE: NEW YORK
Shares of medical device maker Cordis Corp. plunged 11 percent Wednesday after Johnson & Johnson delayed its $1.8 billion buyout, but analysts said they doubt the deal is in danger.
Cordis shares fell $11.25 to $95.25 on the Nasdaq Stock Market after the companies released a one-paragraph statement saying J&J would take an extra month to examine Cordis' businesses.
``Strategically, it still makes a lot of sense, and I would expect J&J to proceed as planned,'' said Eli Kammerman, analyst with Salomon Brothers in New York, who called the stock decline an overreaction.
Cordis, which makes balloon angioplasty devices used to treat heart disease, agreed to a $109-per-share stock swap buyout by J&J last month, succumbing to what had been a rare hostile takeover move by the health care conglomerate. J&J's bid caused Cordis shares to jump more than $20.
Under the deal, Wednesday was the last day J&J could back out if it was unsatisfied with its review of Cordis' books, known as ``due diligence.'' The companies said they extended the deadline until Jan. 22.
J&J's shares were largely unaffected, gaining 371/2 cents to $86.871/2 on the New York Stock Exchange.
- Associated Press
LENGTH: Short : 33 linesby CNB