Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) shareholder Discovery Equity Partners is not waiting for the closing of the sale of the company to Covidien plc (NYSE: COV), and has sold its entire 3.7% stake of 1.2 million shares. This is the private equity fund, which a few weeks ago sent a sharply worded letter to Given Imaging's board of directors, accusing it of bad management and failure to create value for shareholders.
In the letter in early October, Discovery Group said that a sale to a strategic buyer could be expected to achieve a value of $26-30 per share. This estimate was 30-50% above Given Imaging's share price at the time.
On December 8, Given Imaging announced the sale of the company at $30 per share to Ireland's Covidien for almost $1 billion. Given Imaging's share price jumped on the news, closing the premium between the share price and the sale price. Trading volume was very heavy, especially on Monday, when Discovery Equity Partners apparently sold its stake for $30-35 million.
Discovery Equity Partners invested in Given Imaging in early 2011, when its share price was $11-16. Discovery has made a handsome return in the investment.
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2013
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