Osteotech Inc. (OSTE) has postponed its annual shareholder
meeting after the company, embroiled in a proxy battle, struck a
deal Tuesday to be bought by Medtronic Inc. (MDT) for about $123
million.
Osteotch, citing its freshly signed merger agreement in which
Medtronic has agreed to pay $6.50 for each of its shares, said
Wednesday it has postponed the meeting, which was scheduled for
this coming Monday. The company, which provides human bone and bone
connective tissue used in transplants, said it would schedule a
special stockholder meeting "as soon as possible" to approve the
merger pact.
If the acquisition isn't completed, the company will reschedule
its annual meeting. The deal is subject to Osteotech shareholder
and other regulatory approvals.
Osteotech earlier this month said it hired Deutsche Bank AG (DB)
to explore potential alternatives for the company in the wake of a
proxy fight with dissident investors. The group, which owns 23% of
Osteotech's stock, was running a four-person slate of candidates
for election to Osteotech's board, citing the company's beaten-down
stock and erosion of its results.
A member of the dissident group said on Tuesday that they were
"currently reviewing the transaction and will reserve comment until
an appropriate time."
Shares of Osteotech closed at $6.44 on Tuesday and were inactive
premarket. The stock has more than doubled so far this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com
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