This morning, Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) confirmed the report in "Globes" yesterday evening that it had broken off talks on the sale or merger of the company, as part of its strategy of boosting its growth and maximizing shareholder value.
In a notice to the Tel Aviv Stock Exchange, the company said that ,after an in-depth search, a committee of the board of directors had recommended continuing to implement the company's operational plan as the best way of enhancing its value.
Meanwhile, Discount Investment Corporation (TASE: DISI), which controls Given Imaging through its direct holdings and its indirect holding via Elron Electronic Industries Ltd. (TASE: ELRN), has announced that it seeks to sell it 45.5% stake in the company in a single block. Given Imaging says that it is not obliged to report on any sale by Discount Investment.
Given Imaging, which has developed a camera-in-a-pill for examination of the digestive system, is traded on Nasdaq and on the Tel Aviv Stock Exchange with a market cap of $570 million. It its peak, in 2004, the company had a market cap of $1.2 billion.
It is believed that the parties to the sale talks failed to reach agreement on price. IDB Holding Corp. Ltd. (TASE:IDBH), which ultimately controls Given Imaging, still dreams of a $1 billion valuation for the company, whereas the potential buyers are will to pay about 25% less (which still gives a premium of about 32% on the market price). One potential buyer whose name has been mentioned in this connection is Japanese company Fuji.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2013
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