STAAR Surgical said on Tuesday it plans to terminate its merger agreement with Swiss eyecare giant Alcon after failing to secure enough shareholder votes to approve the deal, sending its shares down more than 12%.
The vote follows a bitter standoff between Staar’s board and key shareholders, even as Alcon stepped up efforts to push the takeover across the finish line.
Alcon had last month made a new offer worth $1.6 billion for Staar, up from its original offer of $1.5 billion.
“We respect the outcome of the vote and look forward to working collaboratively with shareholders to ensure the best possible outcome for STAAR as a standalone company,” CEO Stephen Farrell said.
Broadwood Partners, Staar’s biggest shareholder with nearly 30.2% stake, had actively opposed Alcon’s initial offer, saying it undervalues the business and reflects a flawed sale process.
“As STAAR’s largest shareholder, we are confident in the company’s standalone prospects and committed to helping STAAR realize its abundant potential for the benefit of all shareholders,” Broadwood’s founder and president, Neal Bradsher, said on Tuesday.
Staar, which produces and markets implantable eye lenses, has struggled with declining revenue and a collapse in sales in China.
“Part of how Staar emerges from this period depends on what existing or new management will want to do with the company but also the health of its broader end-markets (including China)”, BTIG analyst Ryan Zimmerman said.
Shares are “unlikely to see much, if any bid, as investors have limited reason to want to own Staar until clarity on the company emerges,” he said.
Source: Reuters.com