(Bloomberg) -- Bausch + Lomb Corp. shares rose the most ever following a report that the eye-care company is considering selling itself to disentangle from its debt-laden parent company.
The Financial Times reported Sept. 14 that Bausch + Lomb is working with Goldman Sachs to test interest from buyers. The company separated in 2022 from parent Bausch Health, which still owns the vast majority of shares.
Bausch + Lomb shares rose as much as 18% in New York trading as of 10:18 a.m. The stock had fallen 9% this year before Monday’s trading. Bausch Health shares also rose.
A sale could value Bausch + Lomb at more than $13 billion, according to Bloomberg Intelligence analyst Mike Holland.
The news is “certainly welcome to investors tied up in the Gordian’s knot at Bausch Health today, both on the equity and credit sides,” Holland said.
Bausch + Lomb has about $4.7 billion of debt, according to data compiled by Bloomberg. Bausch Health has more than $20 billion of debt.
Bausch Health junk bonds maturing in 2028 and paying interest at 11% were among the biggest gainers Monday, rising 2.5 cents to 92 cents on the dollar, according to Trace.
T.J. Crawford, a spokesperson for Bausch + Lomb, said the company doesn’t comment on rumors or speculation. Bausch Health didn’t immediately return a message seeking comment.
--With assistance from Eliza Ronalds-Hannon.
(Updates with debt information in sixth and seventh paragraphs. A previous version corrected spelling of a company name.)
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