Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) has announced that it is considering a merger or sale of the company, and that it is actively exploring proposals.
In a statement, it said, "In order to maximize growth and enhance shareholder value the company is currently evaluating a range of strategic options, including preliminary non-binding indications of interest received from a number of parties relating to a possible merger or sale of the company. The company intends to continue to actively explore these and other alternatives, including a strategic alliance or additional acquisitions such as the recently announced acquisition of the assets of The Smart Pill Corporation."
The company added, "The board of directors has appointed an executive committee consisting of the chairman and two independent directors to oversee the process." Barclays Bank plc (LSE: BARC) is assisting the company in this process.
A beneficiary of a sale or merger of Given Imaging would be Nochi Dankner; IDB Holding Corp. Ltd. (TASE:IDBH) unit Elron Electronic Industries Ltd. (TASE: ELRN) owns 31% of Given Imaging, including 9% held through Rafael Development Corporation, a company it jointly owns with Rafael Advanced Defense Systems Ltd.
Given Imaging's share price rose 10.1% by mid-afternoon on the TASE today to NIS 63.45, after rising 2% on Nasdaq yesterday to $15.27, giving a market cap of $472 million. The share is up 9.3% in premarket trading on Nasdaq today.
Published by Globes [online], Israel business news - www.globes-online.com - on October 18, 2012
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