Warburg considers Bausch IPO

Warburg Pincus is reported to be interviewing banks for a initial public offering (IPO) of Bausch+Lomb following disappointing bids for the company, according to Bloomberg (February 22).

The private equity firm is said to be soliciting pitches from Bank of America, Citigroup, Credit Suisse Group and JP Morgan Chase, which financed its 2007 buyout of B+L in a deal that valued the company at $4.6bn including debt. Warburg had been working with Goldman Sachs Group to find a buyer for a target price of at least $10bn. However, private bids were reported to have come in at below $9bn. As a result, Warburg, which is aiming to raise $12bn for a new fund, now plans to pursue an IPO.