Baxter stock pops on reports of Carlyle’s potential buyout of its kidney care unit

Shares of Baxter International (NYSE:) rose more than 5% on Friday after Reuters reported that private equity firm Carlyle Group is in exclusive negotiations to acquire the healthcare firm’s kidney care spinoff, Vantive, for over $4 billion, including debt.

The exclusive negotiations began in late June and an official deal could be announced in the coming weeks.

The talks were first reported by the Wall Street Journal.

Analysts at Wells Fargo said the $4 billion price tag for Baxter’s kidney care unit “appears reasonable.”

They said their analysis indicates an annual EPS dilution of $0.45-$0.55, or 13-15%, to the current BAX figures.

Baxter, a medical device manufacturer, disclosed in March that it had been in talks with select private equity investors about a potential sale of its kidney care unit.

This move comes more than a year after Baxter announced plans to separate the unit due to supply-chain issues and declining demand for dialysis services. The company has indicated that it intends to finalize the separation of the unit in the second half of the year.