The Theragenics Corporation has rejected a takeover bid from German company Eckert & Ziegler Strahlen- und Medizintechnik AG (EUZ), coming from the Berlin-based company’s subsidiary, IBt Bebig.
EUZ had proposed to acquire all outstanding shares of Georgia-based Theragenics’ stock for $2.20 per share, which, according to Georgia Business News, would have made the deal worth about $74 million.
Theragenics’ board of directors declared EUZ’s offer too low, saying the offer undervalues the company.
“After careful and thorough evaluation, and with the assistance of our financial and legal advisors, our board unanimously determined that the proposal grossly undervalues our business and prospects and therefore is inadequate and not in the best interests of Theragenics and its stockholders,” said M. Christine Jacobs, Theragenics’ chairperson and chief executive officer, in a statement.
Theragenics manufactures and distributes surgical products, including wound closure, vascular access and specialty needle products, and manufactures and markets brachytherapy devices for minimally invasive treatment of localized prostate cancer.
EUZ is a global isotope technology company and a holding company for specialized subsidiaries processing radioisotopes and developing, manufacturing and selling isotope technology components, medical technology equipment and related products.
Georgia Business News also reported that Theragenics’ profit fell 32 percent to $2.1 million last year and that its stock closed at $2.02 a share, up 27 percent, on Thursday.