Johnson & Johnson
Walking Away

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By jammerh
January 27, 2006

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Walking away takes discipline.

A big acquisition like this can be the crowning achievement in any CEO's tenure. Upping the bid would have been easy enough for JNJ, after having invested so much in studying this deal.

From my perspective, it is one of the true marks of the quality and integrity of management when a company can draw the line at paying up to chase any acquisition.

Guidant may or may not prove to have been worth the price. But it isn't a bargain at any price, and knowing where to draw the line takes great analysis and objectivity.

JNJ management seems to care more about JNJ than swallowing a rival.

And that's great management.

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