Report: Conglomerate in talks to buy heart device maker

Tuesday, Dec. 7, 2004 | 9:30 a.m.

NEW YORK -- Johnson & Johnson, the drug and health care products company, is reportedly in advanced negotiations to buy Guidant Corp., a leading maker of devices to treat heart and circulatory illnesses, for more than $24 billion. Guidant shares rose nearly 8 percent.

The New York Times said in today's editions that executives close to the talks that it did not identify further said the discussions are at a delicate stage and the deal could still fall apart. But it said the executives were trying to reach a final deal within a week.

The newspaper said the deal would give J&J, whose products include Band-Aids, Tylenol pain reliever and anemia treatment Procrit, a foothold in the growing market for products like defibrillators and pacemakers that manage heart rhythms.

It would also strengthen J&J's position in the market for stents that are used to prop open blood vessels after blockages have been removed. J&J makes the drug-coated stent Cypher.

In early trading on the New York Stock Exchange, Guidant shares rose $5.27 to $74.02 while Johnson & Johnson fell 73 cents to $61.10.