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CareFusion Shares Spike After Becton Dickinson Buyout

Becton-DickinsonBecton Dickinson and Co. (NYSE:BDX) has reached an agreement to buy CareFusion Corp. (NYSE:CFN)  in a $12.2 billion dollar deal. Becton BDX,  based in Franklin Lakes, N.J., will pay $58 in cash and stock for each share of San Diego-based CareFusion (NYSE: CFN), based on Becton’s closing share price Friday.

CareFusion shares rose 1.8% to $46.17 in New York Stock Exchange trading Friday. Becton shares finished up 1.5% at $115.84.

CareFusion Corp. (NYSE:CFN)  shares have spiked 23% to $56.82 in early trading.

Becton Dickinson and Co. (NYSE:BDX) are up in early trading today 6% to $122.92.

The companies, in news releases, said the cash-and-stock deal was unanimously approved by the boards of both companies.

The deals as the deal is expected to be completed in the first half of next year. Becton and CareFusion make products like catheters, tubes and pumps that hospitals use to deliver medicines to patients.

“Hospital needs are certainly driving this,” said Vincent Forlenza, Becton’s chief executive. Their “pressures are intensifying as health-care spending comes under more pressure not just in the U.S. but around the globe.”

Becton has about $8.3 billion in annual sales, while CareFusion notches about $3.8 billion. The two companies currently have a combined market capitalization of nearly $32 billion.

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