 Guidant is well known for making heart medical devices. |
Pharmaceutical giant Johnson & Johnson is in advanced negotiations for the acquisition of medical technology firm Guidant Corp, reports say. According to agencies, the deal - worth about $24bn (�12.5bn) - is close to being sealed.
Guidant is a key player in equipment for dealing with heart problems such as implant defibrillators and pacemakers.
Analysts said the deal might alleviate - but not cure completely - J&J's reliance on a slowing drug business.
Some of J&J's products are facing patent expirations, while the company is also facing challenges from generic products.
According to media reports, talks about the prospective deal extended throughout the weekend, putting the likelihood of an announcement on Monday in doubt.
At present, analysts value Guidant at about $75-80 a share for the purposes of a takeover offer, but a new stent product - a device used to keep arteries open - could mean incentive payments depending on its trial success.
Analysts say that US antitrust regulators could force the firms to shed some overlapping stent operations.
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