Millipore confirms evaluating strategic alternatives

BANGALORE (Reuters) - Life-sciences tool maker Millipore Corp (MIL.N) confirmed late Tuesday it was evaluating strategic alternatives, which would include pursuing a process with potential bidders to explore a merger or sale of the company, sending its shares up 5 percent.

A source familiar with the situation told Reuters on Monday laboratory equipment maker Thermo Fisher Scientific Inc (TMO.N) offered to buy Millipore for $6 billion.

Morgan Stanley analyst Marshall Urist, who remains hopeful about completion of a transaction, said Tuesday's announcement was of "little surprise."

Thermo Fisher's shares dropped 2 percent on Wednesday. On the stock's fall, Deutsche Bank analyst Ross Muken said investors feared that Millipore's announcement makes a takeover process more competitive and might put upward pressure on the eventual deal price.

"Millipore is an extremely attractive asset with some very nice growth area, and we think the combination with Thermo Fisher makes the most sense both financially and strategically," Muken added.

Millipore shares had soared as much as 36 percent on Monday to an all-time high as analysts then viewed the takeover bid as a "major positive."

Millipore has engaged Goldman Sachs as its financial advisor and Cravath, Swaine & Moore LLP as legal advisor, it said in a statement.

It has not set a definitive timetable for completion of its strategic evaluation.

The company said it does not plan to disclose developments regarding the process unless and until its board approves a specific transaction.

Millipore, which has a market capitalization of about $4 billion, makes filters and purifiers for laboratory water and other materials used in making biotechnology drugs.

Shares of Millipore were up $4.43 at $93.30, while those of Thermo Fisher were down $1.07 at $48.60 in afternoon trade on the New York Stock Exchange.

(Additional reporting by Sakthi Prasad; Editing by Kazunori Takada, Aradhana Aravindan and Maju Samuel)