Eckert & Ziegler, parent company of radiotherapy and radioisotope developer Eckert & Ziegler Isotope Products, has announced it will not increase or pursue its offer to acquire Theragenics due to resistance from Theragenics' board of directors.
The Theragenics board was opposed to a negotiated transaction, and there is no evidence that the additional effort of a hostile takeover would be justified, according to Eckert & Ziegler.
On March 17, Eckert & Ziegler announced a proposal to acquire all of Theragenics' outstanding shares for $2.20 per share in cash. The offer was worth $74 million (52 million euros) and a premium of 38.4% more than Theragenics' closing stock price on March 16.
On March 25, Theragenics notified Eckert & Ziegler that its board of directors determined it was not advisable for Theragenics to pursue a sale of the company at this time because the proposal "grossly" undervalued its business and prospects, Eckert & Ziegler said.
A hostile takeover bid is more costly and time-consuming than a consensual transaction, the firm said. Lacking evidence of a substantially increased business value, Eckert & Ziegler decided against pursuing the transaction.
