A proposed sale of Del Medical Systems Group appears to have collapsed.
Del Medical parent Del Global Technologies said it was notified March 21 that the party with whom it had signed a letter of intent for the sale of its Medical Systems Group was terminating negotiations.
In addition, the buyer is demanding an immediate $1 million payment, which is provided for in the letter of intent in the event the buyer was ready, willing, and able by March 4 to enter into a definitive acquisition agreement based on the letter of intent and that Del Global elected not to enter into the purchase agreement.
Although there can be no assurance that it will not have to pay, Del said it believes that no such payment is required under the terms of the letter of intent, and that it intends to vigorously defend any attempt by the buyer to collect the payment.
By AuntMinnie.com staff writers
March 22, 2005
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