HealthTronics Inc. said its $26.9 million unsolicited buyout offer for Irvine’s Endocare Inc. still stands, despite being rejected three weeks ago.
Endocare rejected Austin, Texas-based HealthTronics’ bid on Aug. 13, saying its board “determined the proposal is inadequate and is not in the best interest of Endocare’s shareholders.”
HealthTronics, a maker of urology products, said it sent a letter to Endocare’s board reaffirming its bid and said it was willing to revise the bid to allow Endocare shareholders to either receive cash or shares of HealthTronics’ stock.
HealthTronics said in its letter that it believes its proposal reflects a fair value for Endocare and that that it was unclear as to why Endocare’s board believed the bid was inadequate and what modifications would make it adequate.
HealthTronics’ offer was a 20% premium over Endocare’s closing price on Aug. 8, when it made the bid after the market closed that day.
HealthTronics is interested in Endocare as part of a bid to widen its treatment offerings. Endocare focuses on cryoablation-based procedures, which use ice in surgeries to freeze and destroy cells within tissues and tumors.
Investors seemed to like the move, sending Endocare’s shares up 13% in midday Nasdaq trading but ended flat at close of trading with a market value of about $27 million.
