Struggling contact lens maker Cooper Cos. of Lake Forest could be bought for $2.7 billion by France’s Essilor International SA, according to a research report from Paris brokerage Oddo Securities.
The news, which also was reported in Challenges, a French magazine, sent Cooper’s shares up 11% on Wednesday.
Essilor, a contact lens maker whose brands include Airwear and Varilux, didn’t confirm or deny the research note, which it called speculation.
Cooper’s shares have been up 17% since the start of the year, following a decision to cancel a presentation at JP Morgan’s healthcare conference that led to talk that it was a takeover target.
Essilor’s been on an acquisition tear, making nearly 40 deals in 2005 and through the first nine months of 2006.
Oddo Securities’ note, which was issued Monday, said a Cooper buy would enhance Essilor’s earnings from the second year of the deal.
“Although other players in the contact lens market are natural predators, Essilor may also be interested. The group has made no secret of the fact it is considering a strategic acquisition in 12-18 months. Moreover, contact lenses are one of the possibilities being explored by Essilor,” Oddo said in its note.
