MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

Home » Ev3 to settle shareholder lawsuits over Covidien buyout

Ev3 to settle shareholder lawsuits over Covidien buyout

By

COV, EVVV logos

ev3 Inc. (NSDQ:EVVV) agreed to settle a group of lawsuits filed by shareholders looking to block its $2.6 billion buyout by Covidien plc (NYSE:COV).

The lawsuits, filed in the Hennepin County District Court for Minnesota and Delaware’s Court of Chancery, accused the Plymouth, Minn.-based company’s board of breaching its fiduciary duties in giving a green light to the merger and of failing to disclose how it evaluated the offer from Covidien, according to regulatory filings.

The settlements call for ev3 to disclose additional information about the run-up to the $22.50-per-share offer, including how the company it hired to evaluate potential acquirers — J.P. Morgan Securities Inc. — went about evaluating the deal, according to a filing with the federal Securities & Exchange Commission. The tender offer is set to expire at midnight Eastern time July 9. Ev3 and the members of its management team named in the suits deny any wrongdoing and agreed to settle "solely because it will eliminate the burden and expense of further litigation," according to the filing.

Ev3’s board met Feb. 10 to discuss "acquisitions of certain tuck-in products or technologies that might optimize or extend ev3’s product portfolio and more transformational acquisitions," according to the filing. Over the next five weeks, J.P. Morgan contacted nine companies deemed to be potential strategic fits for a buyout, including Covidien, with four declining to pursue a merger, according to the filing.

The company decided not to pursue a financial buyer, believing that a strategic buyer would pay more for ev3 and that, "based in part on advice from JP Morgan, that the synergies between ev3 and a strategic buyer would likely lead to a higher price," according to the filing.

Mansfield, Mass.-based Covidien plans to finance the merger, announced June 1, partly through a $1.5 billion offering of senior debt notes, partly with cash and partly though a bridge loan. The debt, issued in a series of three offerings, consists of $500 million worth of 1.875 percent notes due in 2013; $400 million worth of 2.8 percent notes due in 2015; and $600 million worth of 4.2 percent notes due in 2020.

Shortly after word of the deal broke, the Food & Drug Administration granted an expedited review of ev3’s Pipeline embolization treatment for cerebral aneurysms. The company said the FDA agreed to hasten its consideration of the pre-market approval application it filed May 18 for the device, which is designed to treat large, giant and wide-necked brain aneurysms.

In case you missed it

RSS From Medical Design & Outsourcing

  • B. Braun receives FDA approval for Florida pharmaceutical manufacturing plant
    B. Braun Medical announced today that it received final approval from the FDA for its new pharmaceutical manufacturing plant. Bethlehem, Pennsylvania-based B. Braun’s Daytona Beach, Florida-based plant will produce 0.9% sodium chloride for injection available in B. Braun’s Excel Plus IV bags in 1,000 mL and 500 mL sizes. Get the full story at our… […]
  • 3D Printing: Making products better, faster, and more affordable
    With help from HP’s Multi Jet Fusion 3D printing technology, Biotec produces improved parts for its medical devices in less time and at a lower cost. Download this white paper… The post 3D Printing: Making products better, faster, and more affordable appeared first on Medical Design and Outsourcing.
  • Eli Lilly to build $1B manufacturing facility for injectable products, devices in North Carolina
    Eli Lilly (NYSE:LLY) announced today that it plans to invest more than $1 billion to create a new manufacturing site in North Carolina. Indianapolis-based Eli Lilly’s new facility, which it expects to bring with it nearly 600 jobs in Concord, North Carolina, will manufacture parenteral (injectable) products and devices while increasing the company’s manufacturing capacity. Get… […]
  • How Bigfoot Biomedical plans to take diabetes management forward
    For close to 20 years, Jeffrey Brewer has focused on finding ways to support insulin delivery and manage diabetes. Bryan Mazlish was the first person in the world to hack into an insulin pump and continuous glucose monitor (CGM) and enable a do-it-yourself closed-loop insulin dosing system, Brewer told Drug Delivery Business News. “It turned… […]
  • Edwards Lifesciences misses on Q4 earnings as omicron hammers hospitals
    Edwards Lifesciences (NYSE:EW) posted fourth-quarter results that fell short of the consensus forecast on Wall Street, but reaffirmed its outlook for 2022. The Irvine, California-based heart device company yesterday evening reported profits of $335.3 million — or $0.53 per diluted share — on sales of $1.33 billion for the three months ended Dec. 31, 2021,… […]
  • How Phillips-Medisize helped Sotech Health develop a breath analyzer for COVID-19
    Medtech contract manufacturing giant Phillips-Medisize used its human-factors product design expertise to help startup Sotech Health create what the companies claim is a breath sensor system that can detect COVID-19 in less than 30 seconds. Dallas-based Sotech Health has submitted the device to the FDA for an emergency use authorization. It’s also seeking regulatory nods… […]
  • Carbon introduces next-gen 3D printers
    Carbon today announced its next-gen M-Series 3D printers based on DLS technology. The new M3 and the M3 Max printers boast faster printing, a more straightforward print experience, expanded design space and a more consistent surface finish, according to Carbon. Carbon said a 4K light engine enables a doubling of the build area with the… […]
  • Philips launches at-home, 12-lead ECG for clinical trials
    Royal Philips (NYSE: PHG, AEX: PHIA) announced today that it is expanding its remote cardiac monitoring portfolio with a patch-based, clinical-grade ECG. The new at-home electrocardiogram monitors could reduce the need for site visits during clinical trials, according to the Dutch medtech giant. At-home ECG is a hot space: iRhythm Technologies CEO Quentin Blackford recently… […]
  • TE Connectivity beats the Street in Q1
    TE Connectivity (NYSE:TEL) posted first-quarter results today that beat the consensus forecast on Wall Street. The Schaffhausen, Switzerland–based company provides connectivity and sensor solutions for a broad range of industries, including medtech. The company reported profits of $566 million — or $1.72 per share — on sales of $3.8 billion for the fiscal quarter ended… […]
  • Element Materials Technology acquired by Temasek
    Element Materials Technology this week announced that it was acquired by Bridgepoint’s Temasek for an undisclosed amount. Singapore-based Temasek has been a majority shareholder in Element since 2019. Element expects to accelerate its growth and build stronger positions in end-markets like life sciences and connected technologies, according to the company. “The acquisition of Element by… […]
  • FDA approves Medtronic’s spinal cord stimulation for chronic pain from diabetic neuropathy
    Medtronic (NYSE:MDT) announced today the FDA approved its Intellis and Vanta neurostimulator for treating chronic pain. The approval covers the Intellis rechargeable neurostimulator and the Vanta recharge-free neurostimulator for the treatment of chronic pain associated with diabetic peripheral neuropathy. Get the full story at our sister site, MassDevice. The post FDA approves Medtronic’s spinal cord stimulation […]

Leave a Reply