Johnson & Johnson (JNJ.N: Quote, Profile, Research) , facing a rival bid for Guidant Corp. (GDT.N: Quote, Profile, Research) , on Tuesday said it was committed to the transaction but failed to raise its offering price, signaling to many on Wall Street that it may walk away from the deal. J&J issued the statement a day after Boston Scientific Corp. (BSX.N: Quote, Profile, Research) made a surprise $25 billion offer for medical device maker Guidant -- topping J&J’s recently reduced price of $21.5 billion, which had been worked out with Guidant last month. J&J said its offer represents the “full and fair value” for Guidant, and that it expects Guidant shareholders to vote on its bid at a meeting expected to take place in the first quarter of 2006. Guidant’s deal with J&J nearly collapsed amid safety concerns and litigation over recalls of its implantable cardioverter defibrillators, devices that detect and treat potentially lethal heartbeats. Instead, J&J was able to reduce its bid to $63 per share from $76. But by pushing hard for the discounted price, some analysts now believe J&J may have painted itself into a corner.
