Johnson & Johnson Buys Guidant

Health care products giant Johnson & Johnson is buying Guidant
Corp., one of the world's top makers of cardiac devices, for about
$25.4 billion in cash and stock.

Johnson & Johnson said Wednesday
the planned acquisition of Indianapolis-based Guidant, which makes
pacemakers and cardiac defibrillators, will complement J&J's line
of products and services in cardiology and medical devices.

"The combination of
these businesses will enable us to bring innovative new therapies to
patients and their physicians in this very important and fast growing
therapeutic area," said William C. Weldon, chairman and chief executive
officer of Johnson & Johnson in a prepared statement.

Guidant
shareholders still must approve the acquisition, the largest business
deal in Johnson & Johnson's 118-year history, according to a
Johnson & Johnson news release.

Under the terms of the deal
announced late Wednesday, each Guidant share will be exchanged for
$30.40 in cash and $45.60 in Johnson and Johnson stock. The $76 price
is a 5.5 percent premium over Guidant's closing price of $72.05 on
Wednesday.