AMO abandons bid for B&L

Advanced Medical Optics has withdrawn its $4bn (£1.9bn) bid to buy rival Bausch & Lomb, paving the way for the private equity firm Warburg Pincus to push ahead with its own deal to buy the US eye care company.

According to a report in the Financial Times, AMO's move followed the opposition to the deal from ValueAct Capital, one of its largest investors, which claimed the company should focus on its existing business rather than pursue the acquisition.

AMO's bid of $75 per share was higher than the $65 share offer made by Warburg Pincus.

The FT also reports that there had been concern surrounding the AMO offer because of possible opposition by antitrust regulators, since both companies are makers of contact lens solutions.