Boston Scientific seen pursuing divestitures

Debra Sherman

CHICAGO, June 22 (Reuters) - Boston Scientific (BSX.N: Quote, Profile, Research, Stock Buzz), which ended its alliance with Aspect Medical Systems (ASPM.O: Quote, Profile, Research, Stock Buzz) last week, is likely to sell its remaining stake in Aspect and divest several businesses to pay down debt in the wake of its $27 billion acquisition of Guidant Corp., analysts said on Friday.

They also forecast that Boston Scientific, which recently hired a new chief financial officer, Sam Leno, is poised to announce big job cuts in the second half of this year as sales in its key stent business wane.

"I think (Leno) accelerates the whole process. He is focused on operating margins, which are very depressed right now," said Jeff Jonas, a portfolio manager at Gamco Medical Opportunities Fund.

Jonas, whose fund does not own Boston Scientific shares, forecast the company will soon unload its remaining Aspect shares and its roughly 15 percent stake in Cyberonics Inc. (CYBX.O: Quote, Profile, Research, Stock Buzz).

"Every little bit helps ... but the big one will be a possible spin-off of its Endosurgery business," he said.

A initial public offering of the Endosurgery business could raise $800 million to $1 billion, depending upon the structure of the deal, Jonas said.

Boston Scientific has said it is evaluating an IPO of the business.