"Dankner won't sell Given Imaging below $1b"
A source close to the deal says that Nochi Dankner wants a $1 billion valuation for the camera-in-a-pill company.
Elron Electronic Industries Ltd. (TASE: ELRN), a subsidiary of IDB Holding unit Discount Investment Corporation (TASE: DISI), owns 22% of Given Imaging, and Discount Investment owns 15.26%. Given Imaging has received several queries about an acquisition.
Given Imaging has a market cap of $561 million. The company, run by president and CEO Homi Shamir, develops, manufactures, and sells endoscopic capsules, the PillCam, for diagnosis of the small and large intestine.
On Thursday, Given Imaging announced, "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."
A possible reason for the sale is IDB's cash flow problems and Dankner's search for cash.
Given Imaging's share price rose 8.9% in morning trading on the TASE today to NIS 76.01, despite falling 0.2% on Nasdaq on Friday to $18.15.
Published by Globes [online], Israel business news - www.globes-online.com - on October 21, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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