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Northstar Nixes Tang Capital Bid
The medical device company rejects bid from majority shareholder Tang Capital Partners, stating that the proposal “is not in shareholders’ best interests.”
July 21, 2008
Northstar Neuroscience, a medical device company focused on neurological diseases, rejected Tang Capital Partners’ July 2 bid for the company.
Tang offered to acquire the Seattle, Washington-based company for $2.25 per share. The bid was a 50% premium to the closing sale price of Northstar stock on the day prior to Tang’s offer. Tang owns 18% of Northstar stock, and is the company’s largest shareholder.
Northstar chairman Alan J. Levy and chief executive officer and president John S. Bowers Jr. stated in a letter to Tang, “The Board of Directors has deliberately and thoughtfully considered your letter and has discussed the proposal with our advisors, including our financial advisor, Leerink Swann. After careful consideration, the Board has concluded that your proposal is not in the best interests of all shareholders.”
Northstar continues to examine strategic alternatives, the company stated. Leerink Swann is acting as financial advisor to Northstar.
Northstar shares declined from $1.93 to $1.90 today.
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