UPDATE 1-Australia's Sirtex picks China CDH's $1.4 bln offer over U.S.-based Varian's

(Reuters) – Australia’s Sirtex Medical Ltd (SRX.AX) has recommended a $1.
4 billion bid for the liver cancer treatment firm from China’s CDH Investments, choosing it over an agreed deal with U.S.
-based Varian Medical Systems Inc (VAR.N).
Sirtex said in a statement on Thursday its board had recommended CDH’s A$1.87 billion ($1.
41 billion) bid, which will result in the termination of an agreement for Sirtex to sell itself to Varian. U.
S. cancer treatment firm Varian offered A$28 per share in January.
However, the offer was eclipsed by a A$33.60 per share cash offer made by CDH and its partner, China Grand Pharmaceutical and Healthcare Holdings Ltd (0512.
HK), in May. Varian said last month it will not match CDH’s offer, but had said its offer was superior as it had fully committed financing and had received all necessary regulatory approvals.
Sirtex said on Thursday the CDH deal is subject to approvals from entities including Australia’s Foreign Investment Review Board (FIRB) and the U.S.
’ Federal Trade Commission (FTC). It also said that it will pay Varian about A$16 million for walking away from the deal.


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