STAAR Surgical (STAA) soared 10% after Alcon (ALC) increased its offer for STAAR to $30.75/share in cash.
The purchase price increase represents an additional ~$150 million in equity value for stockholders, according to a statement on Tuesday. Alcon increased its offer to $30.75 from its original purchase price of $28 in August.
Alcon (ALC) intends to finance the transaction through the issuance of short- and long-term credit facilities.
Alcon (ALC) expects the transaction to be accretive to earnings in year two. It is expected to close early next year. Alcon urged STAAR (STAAA) shareholders to vote in favor of the transaction in advance of the Dec. 19 vote on the deal.
The increased deal price comes after proxy advisers and shareholders had come out against the original transaction, recommending that STAAR (NASDAQ:STAA) shareholders reject the deal. Several large holders, including Broadwood Partners, STAAR Surgical's biggest holder with a ~30.2% stake, have come out against the deal, publicly saying they plan to vote against it.
Broadwood Partners said it still plans to vote against the revised deal, the investor said in a statement on Tuesday.
"We believe STAAR has a bright future as an independent company," Broadwood said in the statement. "In fact, if the Company achieves management’s own projections, STAAR will be one of the most profitable medical technology companies in the world. Based on this fact, we believe the Company is worth substantially more than $30.75 per share."
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